European Markets Decline After German GDP
LFB Forex
Published Dec 31, 0000 07:00PM ET
Updated May 15, 2009 05:32AM ET
www.TheLFB-Forex.com The Trader Forex Portal
Current Futures: Dow +5.00, S&P -0.70, NASDAQ -1.50
European markets traded mixed after a release showed the German economy contracted 3.8% in Q1, much stronger than expected. U.S. futures continued to trade mixed this morning, while Asian markets closed higher.
During the Early European session, a release showed that the German economy experienced a sharp contraction in the first quarter, contracting 3.8%. This was the fourth consecutive quarter in which the German economy contracted, and at the same time, the biggest quarterly contraction recorded since records were first started, in 1970. TheLFB-Forex.com Trade Team notes that investments and exports were the main components that drove down the quarterly numbers, while spending recorded a slight improvement. Also during the European session, a release showed that the Euro-area economy contracted 2.5%
TheLFB-Forex.com Trade Team further notes that a major part of the German strength came from its export market. However, estimates are now pointing to Germany posting a huge deficit. To make matters worse, the budget deficit is forecast to exceed 90 billion euros in the following year, as the government’s income source – taxes – was affected by the credit crisis.
Asian markets were helped to advance after six U.S. insurers received approval to access the Treasury’s bailout funds today, including Prudential Financial Inc., Hartford Financial Services and Allstate Corp. “The treasury looks committed to use as much as $22 billion for the insurers, which should further stabilize the U.S. financial sector” TheLFB-Forex.com Trade Team said.
Overnight, the Japanese Nikkei gained 171.29 points (1.88%) to 9,265.02. The Australian S&P/Asx rose 49.80 points (1.34%) to 3,773.20. The U.K. Ftse rose 7.89 points (0.18%) to 4,370.47, while the German Dax fell 13.75 points (0.30%) to 4,724.72
Crude oil for June delivery was recently trading at $58.70 per barrel, higher by $0.10.
Gold for June delivery was recently trading lower by $2.50 to $923.60
TeamLFB provides forex related market analysis and trade signals
Get The News You Want
Written By: LFB Forex
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.