German IFO Business Climate (BC) will be released at 0900 GMT. According to economists' expectations the index is expected to change a little to 110.7 from 110.6. Let see how strong fundamentals are to support this prediction.
German Flash Manufacturing PMI fell by 1.8 points to 54.7 for this month. Fall in industrial orders and Factory orders brought negative result to manufacturing index and these all together may subdue continuously increasing business climate index of manufacturing, which was seen at 17.7 in January release.
Retail Sales, another base of BC, increased at 1.2% from earlier -1.7%. In last release of BC retailers were optimist about future business development and that came true. This time we may see high expectations of retailers for future demand. In Wholesaling investors are more satisfied by constantly improving result for last six months. This month too we may see positive result in this index.
In construction industry elevated prices of residential property on less supply may support construction index. In last release the index rose to 2.5 from December 1.3.
Improved trade balance to $18.5billion from expectation of $17.3b and stable GDP at 0.4% may back positive expectation for BC. In ZEW Financial Market Survey Germany earned highest points i.e. 8.8 for current economic situation.
Overall there were favorable results of primal indicators which support economist expectation. Germany is among major importers of Copper, Nickel and Aluminum. Better future expectations by investors mean good demand of industrial metal from this economy. These metals prices may also get support if the result comes as per expectation.