3 numbers to watch: German Industrial Production, Greece, HSBC

Today another dose of German data will hit the market as industrial production MoM for March is released at GMT 10:00. Consensus is looking for a 0.8 percent gain but with yesteday's better than expected factory orders the upside risk has increased.

While Germany has long been able to weather the debt crisis in Europe, the constant hits from austerity, lack of growth, bailouts and a slowing China are taking its toll on Europe's economic juggernaut, as seen by the rapidly contraction in industrial production YoY (see chart below). Therefore today's German industrial production figures are worth watching, as we need Germany to stay afloat in the Eurozone. Otherwise the situation could quickly turn even worse.

Greek stocks plummet on election result, parliamentary gridlock pose threat to bailout plan

The Greek stock market is worth watching today, after Greek stocks fell 6.7 percent yesterday.  The election over the weekend has thrown the country into a chaotic situation with no majority government coalition in sight. With the rise of anti Euro parties in Greece, the probability that the country will eventually leave the euro has increased. The parliamentary composition in Greece also sows concerns about whether the negotiated deal with EU - an austerity program in exchange for more bailout funds - will hit the rocks. It is very likely that there will be another election if no new government is found within the next three days. While the risk from Greece is to some extent contained, the election result does put Greece back into play in European politics and its debt crisis.

HSBC to report Q1 earnings

HSBC, the world's fourth most valuable bank measure by market capitalisation, will report first quarter earnings this morning with analysts looking for EPS of USD 0.22 compared to USD 0.23 reported in the same period last year. HSBC is probably one of the most diversified global banks in terms of geographical exposure and with its heavy focus on commercial banking the bank's earnings release will give insight into global credit formation among households and corporates.