Germany’s industrial production rose much less than expected during November.
The Eurozone recession raised its ugly head again on Wednesday after Destatis reported that Germany’s industrial production rose only 0.2 percent in November, despite expectations for a 1 percent increase. Germany’s production of consumer goods dropped by 2.2 percent (NYSEARCA:EWG).
Despite the disappointing news from Germany, the major European stock indices made significant advances on Wednesday (NYSEARCA:VGK). As is often the case, many commentators are relying on the same explanation for advances in the American stock market as the reason for bullish European trading activity. Do European investors really feel enthusiastic about quarterly earnings season in the United States? EUR/USD Drops on German Industrial Production Data
As of 11:16 EST, the Euro STOXX 50 Index advanced 0.52 percent to 2,705 – staying well above its 50-day moving average of 2,576. The STOXX 50 is holding above its March 19 high of 2,608 and its Relative Strength Index is 64.64 (NYSEARCA:FEZ). The FTSE 100 Index climbed 0.77 percent to 6,100 (NYSEARCA:EWU). The German DAX Index rose 0.30 percent to 7,709 (NYSEARCA:EWG). France’s CAC 40 Index advanced 0.21 percent to 3,713 (NYSEARCA:EWQ). Spain’s IBEX 35 Index jumped 1.85 percent to 8,609 (NYSEARCA:EWP). Italy’s FTSE MIB Index skyrocketed 2.14 percent to 17,314 (NYSEARCA:EWI). A Trio of Top Emerging Market ETFs for 2013
As of 11:20 EST, the euro declined 0.26 percent against the dollar, trading at $1.3047 (NYSEARCA:FXE).
Spain’s ten-year bond yield advanced to 5.12 percent on Wednesday from Tuesday’s closing level of 5.06 percent. Spain’s two-year bond yield declined to 2.40 percent on Wednesday from Tuesday’s closing level of 2.43 percent (NYSEARCA:EWP).
Italy’s ten-year bond yield dipped to 4.31 percent on Wednesday from Tuesday’s closing level of 4.30 percent (NYSEARCA:EWI).
On London’s ICE Futures Europe Exchange, March futures for Brent crude oil declined by 36 cents (0.32 percent) to $110.66/bbl. (NYSEARCA:BNO, NYSEARCA:USO).