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Euro zone industrial output is firmer than anticipated
In January, euro zone industrial output turned out to be stronger than anticipated. That’s what data uncovered on Wednesday. The given outcome became possible do to a considerable contribution from energy. What’s more, it even neglected a tumble in German output.
As the European Union's statistics office Eurostat informed, in January, industrial output in the 19 countries that sharing the common currency managed to tack on by up to 1.4% month-on-month for a 1.1% year-on-year dive.
Financial analysts who were interviewed by Reuters had hoped for a 1% monthly leap as well as a 2.1% annual tumble.
The January outcome was mainly caused by a 2.4% monthly as well as 4% year-on-year rally in energy output that helped to compensate mitigate or compensate the dismal outcomes for capital and intermediate goods production.
In fact, output managed to head north in spite of a decline in Germany, which appears to be the leading economy of the European Union. As follows from Eurostat’s estimate, in Germany, industrial output inched down by about 0.9% on the month that happens to be a higher dive than the 0.8% slump forecast by the German statistics agency earlier this week.
As a matter of fact, huge leaps in Italy and France, which are respectively the third and second economies of the European Union, more than compensated that German data.
As Eurostat informed, in France, output headed north by up to 1.3% on the month, while in Italy, it managed to inch up by about 1.7%.
Meanwhile, the USD index was a bit lower versus rival currencies, demonstrating an outcome of 96.899.
The euro went up by 0.1% hitting $1.13.
All attention on the market is on the Brexit process. Fears over the no-deal Brexit pushed the British pound deep down yesterday after UK Prime Minister Boris Johnson claimed he was ready to abandon negotiations.
The market sentiment is mixed, and the US dollar is trading near the lowest levels for over two years. Let’s have a look at the main market movements today.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!