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European markets down on ZEW survey and uncertainty in Cyprus

FXstreet.com (Barcelona) - The German DAX 30 (-0.40%), the French CAC 40 (-0.54%), the Italian FTSE MIB (-0.35%) and the Spanish IBEX 35 (-0.85%) are down on Tuesday as the Cypriot Parliament prepares to vote the bailout measures. It’s widely expected to reject the deal and Cyprus government will have to go for plan B.

The ZEW survey for March shows a better image in Germany, better than expected. However, it is also showing a concerning drop in the Eurozone, with economic sentiment falling from 42.4 to 33.4 (consensus of 43.7).

Economic sentiment in Germany rose from 48.2 to 48.5, beating 48.0 consensus. Current situation rose from 5.2 to 13.6, beating 6.0 consensus. EMU construction output fell from -4.6% to -7.3% in January, with a monthly contraction of -1.4%.

The British FTSE 100 is down by -0.29%. UK CPI rose from 2.7% to 2.8% in February, with a monthly rise of 0.7%. Core data stayed unchanged at 2.3% (YoY). PPI input rose 3.2% (+1.9% consensus) and output rose 0.8% (consensus of +0.3%). Core output PPI rose 0.3% (MoM), with consensus at +0.2%.

Retail Prices in the UK were at +0.7% (consensus of +0.8%) in February, with easing YoY data from 3.3% to 3.2%. UK DCLG fell from 3.3% to 2.2% (consensus of 2.6%) in January.

Futures for the American S&P 500, Nasdaq 100 and Dow Jones 30 are signaling a higher opening between +0.03% and +0.07% ahead of housing data.

Cypriot parliament expected to discard EU bailout scheme

The Cypriot parliament is due to vote on the controversial EU bailout in the European afternoon, at 16 GMT. The country’s president Nicos Anastasiades has already signalized that the plan would not be backed and that the government was working on “Plan B”.
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The single currency remains apathetic in the vicinity of 1.2940/45 on Tuesday while waiting for the parliamentary vote on Cyprus’s bailout and the US data. Both Housing Starts and Building Permits are...
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