Eurozone: Weakness in emerging markets is a mixed blessing - Rabobank

FXStreet (Delhi) – Research Team at Rabobank, note that while the German IFO business climate index inched up 0.1 points to 108.5, a drilldown of the survey revealed that whilst sentiment in the manufacturing sector deteriorated, sentiment in the retail and wholesale trade sectors improved.

Key Quotes

“This –again– supports our view that the weakness in emerging markets is a mixed blessing for the Eurozone: bad for investment and exports, but good for consumption. Which force ultimately will prevail is still hard to judge at this stage, and this is exactly why we think the ECB does not want to be hurried into any decision about further stimulus.”