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European industrial orders for June rose more than forecast as gathering momentum in the global recovery helped the region post its fastest growth in four years. The European Union’s statistic office said that orders increased 2.5% in the 16-nation euro-area from May. Despite a solid report card for the second quarter the EMU is expected to start showing some signs of weakness as growth slows as indebted nations step up efforts to reduce deficits. On a global level, the euro-region is likely to be affected by a slowdown in powerhouses like the USA and China, both of whom have been signaling that growth is slowing.

Written by Jonathan Granby, DailyFX Research Team

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