Analyst at Danske bank believe that the German IFO and Euro wage growth figure for Q3 will move the market today after its release. Here are some key quotes from the analyst; “Wages have been increasing steadily since Q3 16, reaching 1.8% y/y in Q2 17. Although wage growth has increased, it is still well below the pre-crisis average (from 1996 to 2008) of around 2.4% y/y. We do not expect wage growth to catch up to the pre-crisis average in the near future, as inflation expectations and negotiated wages (especially in Germany) do not show an upward trend. We expect wage growth to remain around 1.8% y/y in H2 17.” “The German Ifo expectations are also released today. Ifo expectations have been on the rise since we entered 2016 and this measure of German business sentiment might not have reached its peak yet, although ZEW expectations dropped to 17.4 in December.”
