The economic data released earlier today showed that both the French and German economies grew by 0.3% for the three months between April and June. Not only was this a major surprise considering analysts were expecting falls of around 0.2%, but it also means that both of these countries are now technically out of recession.

This news helped push both the DAX and the CAC 40 up around 1% but both markets have since fallen back down again after poor US data gave us a reality check that the global recession is not necessarily over just yet.

Retail sales came in worst than expected as did import prices, and there was also a slight rise in unemployment claims so the US economy is clearly still in a pretty unhealthy state, despite what the Federal Reserve said yesterday.

The markets are due for a slight sell-off at some stage so this negative economic news could be just the catalyst it needs as it may well encourage investors to bank some of their recent profits.

 

 

Filed under: Market News

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