From last week’s German and French manufacturing output figures showing a surprise lack of growth, the latest German IPO figures may spell a U-turn for Europe’s growth.
The euro is finding traction against USD with this morning’s top point of 1.24127.
Germany30 [DAX] has been on an upward trend since mid-November, up again today to as much as 9812.75 so far.
The unexpected rise in the Ifo Business Climate Index for industry and trade in Germany took the level from 103.2 points last month to 104.7 points reported today for October’s figures. This sentiment in business growth is the first positive seen since April this year having followed a decrease for the last 6 months.
Hans-Werner Sinn, President of the Ifo Institute, issued a statement, “The downturn in the German economy has ground to a halt for the moment at least. Manufacturers are more satisfied with their current business situation. They are also somewhat less pessimistic about their business outlook. Manufacturers continue to expect further stimuli from export business.”
In terms of wholesales, Sinn commented, “the business climate improved markedly. Wholesalers assess their current business situation as significantly better. Business expectations turned slightly positive.”
Mario Draghi, ECB President, last week hinted at a new bond purchasing programme in an effort to boost the region’s economy, which has been falling to all-time lows. Other stimulus programmes have included long-term loans to banks and the ECB buying asset-backed securities.
Chart from MT4: EURUSD rises
Chart from MT4: Germany30 [DAX] rises
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