American mortgage applications tacked on for the first time for five weeks because most home borrowing costs kept to their lowest value for 10 months…
German economy demonstrates improved momentum in the second quarter
In the second quarter, the German economy managed to regain some of its lost momentum, underpinned by manufacturing, private consumption as well as reviving exports. That’s what the Bundesbank told in a monthly economic statement on Monday.
For the first three months of 2018 economic surge suddenly halved to a quarterly rate of about 0.3% and financial analysts are still discussing whether the deceleration turned out to be merely a hiccup or it stood for the end of a boom in the EU’s number one economy.
Worries that worsening trade tensions could also impact surge have also been affecting investor sentiment. Additionally, the International Monetary Fund told that the euro zone was experiencing serious risks, which could provoke a hand landing for the German economy after a five-year rally.
As some financial analysts pointed out, the German economy demonstrated better momentum in the spring in contrast with the beginning of the year. However, it’s unlikely that the high surge rates of the previous year are going to be repeated. Once again manufacturing turned out to be the major economic driving force.
Pharmaceutical output happened to be especially firm. In addition to this, car manufacturing rallied steeply, even as the output of intermediate goods was still poor, as the bank informed.
Part of the improvement in surge momentum could be explained by the expiration of one-off factors, which held back surge, such as an extremely disruptive flu season. That’s what the Bundesbank informed.
As for household consumption, it managed to remain a cornerstone of surge. At the same time, government consumption that went down in the early part of 2018, bounced off too.
Besides this, activity in the flourishing construction sector managed to drastically ascend notwithstanding capacity constraints, as the Bundesbank pointed out.
The releases of employment change and the unemployment rate for Australia are expected on February 21, at 2:30 MT time.
The release of the Federal open market committee (FOMC) meeting minutes is scheduled on February 20, at 21.00 MT time.
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…