Economic calendar: ZEW sentiment index, Lagarde speech

• Futures point to higher open in Europe

• ZEW sentiment in Germany, CPI inflation in Canada and US property market data

• Lagarde speech at 12:30 am GMT

Good Morning. Futures point to a higher opening in European stock markets, extending yesterday's rebound on Wall Street and a good session in Asia. On the other hand, commodity markets are extending declines, which can be seen as a negative proxy for the economy. Stock market sentiment was bolstered by further comments from the US Treasury, which was reported to be looking into providing unlimited deposit guarantees (through the FDIC) if the banking crisis worsens.

Let us now focus on the upcoming macro calendar. Today's session will primarily bring us ZEW sentiment data from Germany, the Canadian CPI inflation report and US secondary market home sales data. At 12:30 am GMT, President Lagarde will deliver her speech. Traders interested in the oil market should focus on the US API crude inventories report (08:40 pm GMT). Today marks the start of the FOMC's two-day meeting in Washington, which will culminate in an interest rate decision tomorrow at 6 PM GMT. 

Calendar:

10:00 am GMT - Germany, ZEW sentiment index for March. Forecast: 16.5. Previously: 28,1

12:30 am GMT - Speech by President Lagarde (ECB). 

12:30 am GMT - Canada, CPI inflation report for February. 

• Headline. Forecast: 5.4% y/y. Previously: 5.9% y/y

• m/m. Forecast: 0.6%. Previously: 0,5%

• Core. Forecast: 4.8% y/y. Previously: 5.0% y/y

• m/m. Previously: 0,3%

02:00 pm GMT - US, secondary market home sales for February. Forecast: 4.2 million. Earlier: 4.0 million

08:40 pm GMT - US, changes in oil inventories according to API. Forecast: 0.5 mb. Previously: 1.15 mb.