Tuesday
European Market Update: UK Q4 GDP contracts; German IFO survey mixed; All eyes now on FOMC statement and forecasts
Thursday
European Market Update: Risk appetite finds footing aided by China GDP data and German ZEW survey
Sunday
German Economic Growth Slows In 2011
German economic growth slowed in 2011 as the ongoing debt turmoil that almost pushed Eurozone to the brink of collapse last year damped exports.
The price adjusted gross domestic product, or GDP, rose 3 percent in 2011, slower than the 3.7 percent growth in 2010. This was the second consecutive expansion in national output since the economy suffered a 5.1 percent contraction in 2009 due to global financial meltdown.
Meanwhile, Destatis officials were quoted by reports as saying that the fourth quarter GDP may have dropped by around 0.25 percent. The 2011 growth estimate matched economists' forecast.
The price and calendar-adjusted GDP also recorded an annual rate of growth of 3 percent last year compared to 3.6 percent in 2010.
The contribution from foreign trade reduced in 2011 compared to the previous year. Export growth eased to 8.2 percent in 2011 from 13.7 percent in 2010, while import growth also weakened to 7.2 percent from 11.7 percent. Despite the slowdown in exports, net trade contributed 0.8 percentage points to growth.
At the same time, domestic demand, particularly household spending, contributed positively to overall output. The growth in consumer spending accelerated to 1.5 percent in 2011 from 0.6 percent the year before. Public spending grew 1.2 percent.
The GDP growth also reflected a strong upward momentum in capital formation. Gross fixed capital formation in machinery and equipment grew 8.3 percent in price-adjusted terms and in construction, it was 5.4 percent higher than a year earlier.
In 2011, the country's net borrowing amounted to EUR 26.7 billion or 1 percent of the GDP. The ratio fell below the 3 percent reference value set by the Maastricht Treaty in 2011 after exceeding it in both 2009 and 2010.
The past year was indeed turbulent for the Eurozone powerhouse, but the fallout was limited compared to other big euro members like Spain and Italy. Germany enjoys low unemployment and a resounding export sector, though weak demand has started to bite recently.
The unemployment rate hit a record low of 6.8 percent in December, according to data from the Federal Labor Agency. The Federal Statistical Office said earlier this month that the number of employed individuals reached an all-time high of 41.04 million in 2011, breaching the previous record of 2010.
Nonetheless, many of the economic indicators signal Germany is nearing a soft patch as European leaders wrestle with the debt crisis.
The growth in factory orders eased more than expected in November due to a sharp contraction in foreign demand, while the latest Purchasing Managers' survey pointed to a contraction in the German factory sector in December.
Retail sales declined in November as consumers remained reluctant to spend amid a gloomy economic outlook. Industrial output slid 0.6 percent from a month earlier during the month.
In its December monthly report, Bundesbank said the economic growth will slow notably in 2012 amid a deteriorating global outlook.
The central bank expects the economy to grow only 0.6 percent in 2012, slower than the 3 percent estimated for 2011. In 2013, the economy is seen expanding 1.8 percent. German exporters are likely to see a significant impact from slowing demand in Europe, according to the bank.
German economic growth slowed in 2011 as the ongoing debt turmoil that almost pushed Eurozone to the brink of collapse last year damped exports.
Thursday
German 5-year Debt Auction Sees Strong Demand
An auction of a new line of 5-year German federal notes on Wednesday saw strong demand, reports said.
The sale with a target of EUR 4 billion attracted bids totaling EUR 8.97 billion euros. These new notes carrying a coupon rate of 0.75 percent will mature on February 24, 2017.
The bid-to-cover ratio was 2.8 compared to 2.1 in an auction of 2016 notes on December 7.
The country reportedly sold EUR 3.15 billion of 5-year federal notes known as Bobls at an average yield of 0.90 percent, which was less than the 1.11 percent in the previous auction.
(Market News Provided by RTTNews) Post Comment Email(required) Password (required) Comment (required)(Characters left: 3000) History 01/11/2012 Greek Inflation Slows To 4-Month Low 01/11/2012 UK Visible Trade Deficit Widens More Than Expected, Exports Fall 01/11/2012 Portuguese Inflation Eases In December 01/11/2012 UK Trade Deficit Rises More Than Expected 01/11/2012 German Economic Growth Slows In 2011 Show All News Show Latest News TOP 100 INVESTING SITESTOP 100 STOCK INVESTING SITESTOP 100 FINANCIAL SITESTOP 100 FOREX SITES Subscribe Live News Subscribe Analytics Trading terms
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Wednesday
German Debt Sale Attracts Strong Demand
Demand for German debt remains strong amid lingering concerns over the Eurozone sovereign debt crisis, the results of an auction indicated Wednesday.
An auction of a new line of 5-year German federal notes today saw strong demand, just days after the country sold its 6-month treasury bills at negative yield for the first time.
Germany sold EUR 3.153 billion of 5-year federal notes, known as Bobls, at an average yield of 0.90 percent, Bundesbank said. The yield was less than the 1.11 percent seen in an auction of 2016 notes on December 7.
Today's debt sale with a target of EUR 4 billion attracted bids totaling EUR 8.967 billion. The bid-to-cover ratio was 2.8 compared to 2.1 in the December auction.
The amount set aside for secondary market operations was EUR 846.70 million, implying a retention rate of 21.17 percent. The rate was 18.2 percent in the previous sale. These new notes carrying a coupon rate of 0.75 percent will mature on February 24, 2017.
Investors are increasingly flocking to the perceived safety of German securities, shunning the debt instruments of troubled Eurozone sovereigns. The country sold EUR 3.9 billion of its 6-month treasury bills at a yield of -0.0122 percent on Monday. The short-term paper was placed at a negative yield for the first time.
In contrast, France saw its 10-year borrowing costs rise at a sale last week. Focus now turns to the troubled Spain and Italy, who are set to hold debt auctions in the next two days.
The Spanish Treasury is set to sell a series of bonds maturing in 2015 and another two maturing in 2016 on Thursday. The agency aims to raise between EUR 4 billion and 5 billion from the sale. Italy is planning to sell EUR 8.5 billion 12-month treasury bills and EUR 3.5 billion 136-day paper tomorrow.
The Italian Treasury will also offer 6 percent November 2014 bonds on Friday. The nation plans to raise between EUR 2 billion and EUR 3 billion from the auction.
Meanwhile, the biggest Eurozone economy has not been immune to the impact of the crisis and the global slowdown. Official figures released earlier today showed that the German economy grew 3 percent last year, slower than the 3.7 percent expansion in 2010.
The economy grew for the second year in a row, following a 5.1 percent contraction in 2009 amid the global financial crisis. That said, the latest annual figures suggested that the German economy shrunk nearly 0.25 percent in the final three months of 2011.
Demand for German debt remains strong amid lingering concerns over the Eurozone sovereign debt crisis. An auction of a new 5-year German federal notes with a target of EUR 4 billion on Wednesday attracted bids totaling EUR 8.967 billion. On Monday, the country placed its 6-month bills at a negative yield for the first time. In contrast, France saw its 10-year borrowing costs rise last week. Focus now turns to the troubled Spain and Italy, who are set to hold debt auctions in the next two days. (Market News Provided by RTTNews) Post Comment Email(required) Password (required) Comment (required)(Characters left: 3000) History 01/11/2012 German 5-year Debt Auction Sees Strong Demand 01/11/2012 Greek Inflation Slows To 4-Month Low 01/11/2012 UK Visible Trade Deficit Widens More Than Expected, Exports Fall 01/11/2012 Portuguese Inflation Eases In December 01/11/2012 UK Trade Deficit Rises More Than Expected Show All News Show Latest News TOP 100 INVESTING SITESTOP 100 STOCK INVESTING SITESTOP 100 FINANCIAL SITESTOP 100 FOREX SITES Subscribe Live News Subscribe Analytics Trading terms
FXOpen provides the same trading opportunities to individuals and private companies that have been traditionally only offered to large financial institutions.
Check our trading terms Click here Privacy Terms AML Home Forex Live Market News Forum Contact Us Callback request About Us Forex Terminal Metatrader 4 Trading terms ECN/STP Deposit / Withdrawal Forex Education Forex Analytics Economic Calendar Live Market News Promotions Partnership Contact Us Forum 2005-2012 © FXOpenAll rights reserved.
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