Bad News from Germany Sinks European Stocks

Print This!

Most major European stock indices fell into the red on Friday following bad news from Germany – the nation with the Eurozone’s largest economy.

Bad news from Germany came from two sources on Friday.  Most major European stock indices declined following the reports (NYSEARCA:VGK).  Destatis reported that Germany’s industrial production declined by 2.6 earth image Bad News from Germany Sinks European Stockspercent in October on a monthly basis.  September’s industrial production decline was adjusted upward to indicate a mere 1.6 percent drop.  This news was in stark contrast with Thursday’s report from Destatis that Germany’s factory orders surged in October by 3.9 percent on a month-over-month basis (NYSEARCA:EWG).

Germany’s Bundesbank issued this disappointing report concerning its economic growth estimate for next year:

Against this background, the Bundesbank’s semi-annual forecast expects that, following a rise of 0.7% in the current year (0.9% after adjustment for calendar effects), real gross domestic product (GDP) will grow by only 0.4% (0.5% after calendar adjustment) next year.  In 2014 real GDP could go up by 1.9% if the euro-area banking and sovereign debt crisis does not escalate further and uncertainty among investors and consumers gradually subsides.

Britain’s Office for National Statistics reported that industrial production in the U.K. fell 0.8 percent in October on a monthly basis.  On a year-over-year basis, the nation’s industrial production sank by a whopping 3 percent.  Manufacturing dropped 2.1 percent over the same period.

As of 11:13 EST, the Euro STOXX 50 Index declined 0.32 percent to 2,595 – staying above its 50-day moving average of 2,514 (NYSEARCA:VGK).  The FTSE 100 Index advanced 0.09 percent to 5,907 (NYSEARCA:EWU).  The German DAX Index declined 0.43 percent to 7,502 (NYSEARCA:EWG). France’s CAC 40 Index dipped 0.07 percent to 3,599 (NYSEARCA:EWQ). Spain’s IBEX 35 Index fell 0.80 percent to 7,847 (NYSEARCA:EWP).  Italy’s FTSE MIB Index sank by exactly one percent to 15,677 (NYSEARCA:EWI).

As of 11:21 EST, the euro declined 0.15 percent against the dollar, trading at $1.2951 (NYSEARCA:FXE).

Spain’s ten-year bond yield declined to 5.45 percent on Friday from Thursday’s closing level of 5.47 percent.  Spain’s two-year bond yield dipped to 2.96 percent on Friday from Thursday’s closing level of 2.97 percent (NYSEARCA:EWP).

Italy’s ten-year bond yield declined to 4.57 percent on Friday from Thursday’s closing level of 4.61 percent (NYSEARCA:EWI).

On London’s ICE Futures Europe Exchange, January futures for Brent crude oil declined by 14 cents (0.13 percent) to $106.12/bbl. (NYSEARCA:BNO, NYSEARCA:USO).  Weighing the Risks in International Oil Plays

Pages: Next

Be kind & share...Share on Facebook0Tweet about this on Twitter0Share on LinkedIn0Pin on Pinterest0Share on Google+0Digg this

Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector's Disclaimer, Terms of Use, and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.

Go to Wall Street Sector Selector Home or Check our Special Wall Street News Section

Visit Us On TwitterVisit Us On FacebookVisit Us On YoutubeVisit Us On Linkedin
Make sure you create your redirects.txt file and that it's readable by the redirect script.