European indicators point to a slowdown

A string of data from the Eurozone is pointing to lower growth in the region. Sentiment was at a 2 year low, German business growth is expected to fall "well below" the 1.5% targets according to the central bank chief, and importantly, corporate lending in the region slowed. 

​According to the ECB, corporate lending declined in January exacerbating the downturn in the region. This is a start to the confirmation that the slowdown in the Eurozone is continuing and the moves by the ECB will have to be followed to see how they are able to react to these changes. The Fed chair is going into his second day of testimony to Congress, shedding more light on what the Fed is looking for in data and how they will react. The ECB will have to start thinking of what policy tools they can politically use in order to calm the fears of the Eurozone countries in the face of slower growth.

Source: ECB