EMU Industrial New Orders Rise on the Year
THE TAKEAWAY: European industrial orders better than expected -> previous figures see positive revision -> market focus remains elsewhere
European industrial new orders for the month of August rose 6.2% compared to August last year, based on data released today. The hike was larger than the 5.8% rise which had been expected, and could provide a much-needed boost to the struggling European industrial sector. Monthly data also released today showed that new orders rose 1.9% between July and August, a not-insignificant increase which likely contributed to the hefty yearly rise. The previous yearly number was revised upwards to 8.9%, and the previous monthly number was brought up from -2.1% to -1.6%.
The new data might be the first truly positive piece of news to hit the European industrial sector in days. PMI numbers released today out of Europe’s largest economies Germany and France painting a weak picture, with German PMI manufacturing continued its drop trend, crossing the line into contraction for the first time in years today at 48.9. Industrial indices around the world have been hit hard by falling demand caused by the European debt crisis, which has spread to affect markets around the world.
The broader spread sees EU leaders set to meet this Wednesday to propose a solution to the ongoing crisis. France’s Finance Minister Barion today forecasted a European debt accord, mentioning that the amount needed to bail out Europe’s beleaguered banking system would be close 100 billion Euros.
Market reaction to the positive industrial data was limited as market players remained focused on the impending European summit. The Euro lost gains made early on in European trade, and is now falling towards a two-day low.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.