The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program
Incoming orders support Sentix economic index for Germany
According to investors, the growth prospects of the German economy have improved significantly. The economic index collected by the consulting company Sentix rose to minus 6.9 (January: minus 16.4) points in February. It is the second increase in a row. The situation assessment index increased to minus 27.5 (minus 36.9) points and the expectations index to plus 16.3 (plus 5.5) points. All values are the highest since July 2025.
ECB: Analysts predict first Interest rate increase for 3Q/2028
The interest rate expectations of monetary policy analysts regarding the further interest rate course of the European Central Bank (ECB) have not changed in the run-up to the latest ECB Governing Council meeting. As the ECB announced, analysts still did not expect any Interest rate cut more. As before the December meeting, they forecast a first interest rate increase to 2.25 percent for the third quarter of 2028.
Political risk in Great Britain weighs on government bonds
Political uncertainty in the UK is putting upward pressure on government bond yields after the prime minister’s chief of staff Morgan McSweeney resigned over the weekend. Concerns that the British prime minister could be replaced in the coming days are unsettling investors in British bonds due to the risk of a move towards looser fiscal rules, writes XTB’s Kathleen Brooks in a research note. “A political risk premium has been added to long-dated UK debt.” Ten-year British government bond yields rose by 2 basis points to 4.543 percent, according to data from Tradeweb.
Japan’s Prime Minister confirms tax cut plans
Japanese Prime Minister Sanae Takaichi used her victory speech to reiterate her intention to push ahead with tax cuts. That campaign promise was popular with voters but has fueled concerns about state finances. After leading the ruling party to a landslide victory in the general election, Takaichi has a much stronger mandate to implement her vision for Japan.
Japan’s prime minister can push through policies with little resistance
Japanese Prime Minister Sanae Takaichi’s Liberal Democratic Party could “fast-track” its policies with little resistance, writes Alex Loo of TD Securities in a research note. Markets are now waiting to see whether Takaichi will stick to its “responsible” fiscal policy and shed its free-spending reputation, says the senior macro strategist. The Takaichi-led coalition government won a landslide victory in the general election. The LDP’s supermajority allows it to override upper house vetoes of policy measures through a second vote, the strategist said.
Probability of intervention in Japan remains high
The likelihood of intervention in Japan remains high, especially if the U.S. dollar breaks above 160 against the Japanese yen in the coming days as part of a tactical rebound in dollar strength, writes Alex Loo of TD Securities in a research note. “In the event of a quick move beyond 160, we expect the Treasury to intervene in the FX market, possibly with help from the US, as the reaction in Yen and JGBs could spill over into the US market,” said the senior macro strategist.
Chinese banks should limit exposure to US Treasuries – agency
Chinese government officials have asked banks to limit purchases of U.S. Treasuries and ordered those with high exposure to reduce their positions, Bloomberg reports, citing unnamed sources. According to the Bloomberg report, the recommendation, which does not apply to China’s government holdings of U.S. Treasuries, reflects concerns that large holdings of U.S. Treasuries could expose banks to sharp fluctuations.
+++ Economic data +++
Mexico consumer prices Jan +0.38% (PROG: +0.41%) yoy
Mexico core rate consumer prices Jan +0.60% (PROG: +0.58%) yoy
Taiwan exports Jan +69.9% yoy (PROG +52.2%)
DJG/DJN/apo
(END) Dow Jones Newswires
February 09, 2026 07:30 ET (12:30 GMT)