Yesterday, the tone on the markets was mixed. US business earnings releases, below-consensus data in the Eurozone, and volatility influenced sentiment throughout the day.
Eurozone consumer confidence fell to -16.1 in January, the lowest level since October (vs. -14.3 forecast).
Elsewhere, the ECB’s bank lending survey revealed that credit demand fell further in Q4, as credit conditions tightened. Overall, the data implies that consumption and investment in the Eurozone were low in the fourth quarter.
Today, the flash PMI readings for January in the major advanced economies are due. The numbers are projected to have barely changed since December. Therefore, barring any huge surprises, the disclosures are unlikely to have an influence on markets.
On the currency front, the dollar was trading firmer. However, the dollar gave back some of its gains. This continued overnight.