Flash GDP data from Spain for Q4 2020 turned out to be a positive surprise. While the country was expected to experience a 1.5% QoQ contraction, release showed a 0.4% QoQ growth. Retail sales in December declined 1.5% YoY but the market was expecting a 3.9% YoY drop so this is also a positive. On top of that, Spanish inflation accelerated from -0.6% to 0.6% YoY in January. As flash releases from euro area countries are calculated using the same methodology, Spanish release is a positive hint ahead of German release at 9:00 am GMT. Nevertheless, while we have observed a positive knee-jerk reaction on DE30, index quickly reversed and moved towards daily lows.
DE30 gained in a knee-jerk move but has reversed quickly afterwards. The index is now trading at daily lows near 13,400 pts. Source: xStation5
