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European markets cheer German factory orders and move higher

FXstreet.com (Barcelona) - The German DAX 30 (+1.08%), the French CAC 40 (+0.68%), the Italian FTSE MIB (+1.46%), the Spanish IBEX 35 (+0.95%), and the rest of European equity indexes are edging higher on Tuesday, as investors celebrate surprising German factory orders figures for March, coming in against market consensus. Data grew by 2.2% in March, instead of contracting -0.5% as expected. February data was revised slightly lower from 2.3% to 2.2%. German factory orders in year-on-year basis dropped further, from -0.2% (revised from 0.0%) to -0.4%, but that came in better than the -2.9% expected. Details showed broad-based gains from the domestic side (+1.8%), as well as exports (ex-Germany EZ orders +4.2% and non-EZ orders +1.9%). Earlier, the French industrial output not only contracted as predicted, but fell by -0.9% instead of the market consensus of -0.3%.

European Commissioner Olli Rehn said that tackling funding problems in Europe is the next challenge and IMF’s Lagarde said that central bankers must find out why banks are not lending.

Futures for the American S&P 500, Nasdaq 100 and Dow Jones 30 are signaling a higher opening by 0.10%-0.20% ahead of US IBD/TIPP economic optimism and Redbook Index, as well as consumer credit change.

Forex: EUR/USD in highs around 1.3130

The euro accelerates its upside through 1.3100 on Tuesday, hitting fresh intraday highs in the boundaries of 1.3130 after German Factory Orders expanded above estimates, triggering a sharp shift towards the risk-on trade...
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Session Recap: Euro recovers ground

The euro advanced versus most competitors during the European session in the wake of the much stronger than expected German industrial orders data, with EUR/USD climbing back above 1.3100 to a high of 1.3131. The move comes after the cross fell to the 1.3050 area on Monday on Draghi comments.
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