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European stocks are almost flat on Tuesday ahead of the highly anticipated speech of ECB president Mario Draghi at 14:00 GMT and FED chair Janet Yellen's semi-annual testimony to the Senate Banking Committee later in the day. Markets will closely watch the testimony for clues as to when the world's largest economy may raise interest rates.
Greece submitted a comprehensive list of reforms as asked by the E.U. as condition for an extension of the bailout for four months. According to officials the list was "sufficiently comprehensive to be a valid starting point for a successful conclusion of the review.".
Germany's Federal Statistics Office released data on German Gross Domestic Product toady. The seasonally-adjusted data showed that the GDP rose +0.7% between October and December in line with expectations as domestic demand and foreign trade were the main drivers of growth in Europe's largest economy. Private consumption rose +0.8%, capital investment added +1.2% and exports increased by +1.3%.A lower oil price and a weaker euro had positive effects on the economy. In the preceding quarter the GDP rose by +0.7%.
Eurostat released data on Eurozone's Consumer Price Inflation today showing a decline by -0.6% in line with expectations further fuelling fears of deflation in the Eurozone as the rate is far below the targeted 2% the ECB is aiming for and the lowest since 2009. Lower oil prices are the main reason for the decline. Month on month consumer prices declined by -1.6% in January compared to -0.1% in the previous month. Core CPI excluding the volatile energy and food items, alcohol and tobacco costs rose +0.6% in January meeting forecasts.
The FTSE 100 index is currently trading +0.09% quoted at 6,918.05. Germany's DAX 30 added +0.02% trading at 11,132.98. France's CAC 40 is currently trading at 4,859.80 points, -0.05%.
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