Stabilization in German Ifo expected

Only a minor improvement is expected in the German Ifo in March, it rose more than expected, showing no signs of moderation. However, with investor surveys weakening in April with the positive news flow ebbing and headwinds to trade still remaining, current conditions are expected to have softened somewhat while expectations may rise somewhat further.

In April, the Ifo business climate index to stand at 107.7, down from 107.9 in March, says Societe Generale. 

Following what is likely to have been a stellar Q1 for GDP growth, expectations are likely to settle for more sustainable growth rates slightly above potential in Q2. As before, the export and manufacturing sectors to be less optimistic on the future outlook, while companies focused more on the domestic economy are likely to be more optimistic.