German October Factory Orders Top Expectations After Recent Weakening
THE TAKEAWAY: German factory orders rise -> sector has struggled with broad-based growth issues recently -> Euro well bid as market awaits EU summit
Data from Germany released today showed a climb in factory orders, with the sector rising by 5.2% in October instead of the 1.0% rise predicted by economists. Orders rose by 5.4% on the year, well above the expected 1.9%. October’s rise came after a slowdown during the past two months, which saw factory orders rise by 2.2% and 4.0%, respectively.
Notwithstanding the unexpected strong performance, German industry is expected to suffer during the 4th quarter of 2011 and into early 2012, with numerous European officials predicting a recession in the 17-member Euro bloc. European GDP data released today was in line with expectations, showing weak growth in the EMU during 2011’s third quarter.
The Euro continued to remain surprisingly well-bid given the bleak economic climate, and market participants await an upcoming summit of European leaders to address the ongoing credit and growth crisis. The single currently surged briefly after today’s data and continues to rise.
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