The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
German economic surge is still subdued
In the first quarter, German economic surge was still sluggish. It’s due to the fact it was suppressed by downbeat industrial output, decreasing export demand for vehicles as well as pessimistic manufacturing sentiment, as the Bundesbank revealed in a month report on Monday.
Well, struggling with sudden weakness in among its car makers, the EU’s number one economy, Germany managed to dodge a recession the previous quarter. In fact, fresh indicators drop a hint that any recovery is going to be slow. Perhaps, in this case, the best scenario would be a drag on surge across the whole euro zone.
This quarter, car manufacturing suffered from a strike at a major engine factory, although a dive in export orders from outside the euro zone might suggest deeper problems, rather than one-off factors.
Therefore, manufacturing sector could drag down the entire economic surge for the third quarter. That’s what the Bundesbank ascertained in a regular monthly economic report.
A boom in construction as well as buoyant private consumption should underpin the German economy during the first quarter, Germany’s key financial institution pointed out, giving an emphasis to the fact that employment keeps soaring, notwithstanding the surge weakness.
Germany’s major bank told that private consumption, as indicated by the firm soar in retail sales, could pick up again considerably.
In addition to this, the European Union's trade surplus with America as well as its deficit with China both tacked on in January, acting as potential fuel for trade clashes between the world's leading economies.
In January, the European surplus in goods trade with America expanded to up to 11.5 billion euros, in contrast with 10.1 billion recorded in January last year.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The European unemployment rate will be announced on Thursday at 12:00 MT time.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.