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10 Nov 2014
European markets weaker, Bunds stronger – DB
FXStreet (Barcelona) - The Deutsche Bank Research Team comments on the European economy weakening in-spite of an increase in private consumption.
Key Quotes
“Closer to home, European markets weakened into the close following the US data with the Stoxx 600 -0.5% lower on Friday. Before this, Germany reported a fairly subdued industrial production print, +1.4% mom which was well under the 2.0% mom consensus.”
“Our European economists noted on Friday that while industrial production fell 0.3% qoq, this was a much smaller drag than the Q2 print although the further deterioration in confidence data does suggest that the underlying economy is weak, despite the robust expansion of private consumption. As a result the team have lowered their GDP forecast (due this week) for Q3 to 0.1% (from 0.4%).”
“Bunds were modestly stronger following the print, 1bp lower to 0.82%. Looking around the rest of the Eurozone, France (0.0% mom versus -0.2% mom expected) and Spain (1.0% versus 0.7% expected) reported firmer industrial production prints.”
Key Quotes
“Closer to home, European markets weakened into the close following the US data with the Stoxx 600 -0.5% lower on Friday. Before this, Germany reported a fairly subdued industrial production print, +1.4% mom which was well under the 2.0% mom consensus.”
“Our European economists noted on Friday that while industrial production fell 0.3% qoq, this was a much smaller drag than the Q2 print although the further deterioration in confidence data does suggest that the underlying economy is weak, despite the robust expansion of private consumption. As a result the team have lowered their GDP forecast (due this week) for Q3 to 0.1% (from 0.4%).”
“Bunds were modestly stronger following the print, 1bp lower to 0.82%. Looking around the rest of the Eurozone, France (0.0% mom versus -0.2% mom expected) and Spain (1.0% versus 0.7% expected) reported firmer industrial production prints.”