Emergency Fed Meeting Spells Volatility

Germany's trade surplus for the month of February widened more than expected with exports making strong gains, according to data released by the Federal Statistical Office on Friday. Germany's trade surplus, on a seasonally adjusted basis expanded 19.8 billion euros in February, following January's downward revised 18.7 billion euros. Analysts were expecting to see a trade surplus of 18.0 billion. Germany's exports increased 1.30% from January while imports increased a meager 0.40%. Germany's current account balance which measures the economy's financial position vis a vis its trading partners showed a 20.0 billion euro surplus in February, non-adjusted, beating estimates of 16.4 billion. Compared to a year ago, Germany's trade balance was 16.3 billion euros.

In signs that the UK economy is losing momentum, its factory output fell in the first quarter of 2016. Data released by the Office for National Statistics on Friday showed that UK's manufacturing output fell 1.10% in February and was down 1.80% from the previous year. The declines in manufacturing were more than what analysts had expected. The slump in manufacturing reinforces expectations that the UK's manufacturing sector continues to weaken with the steel sector leading the declines. Steel production saw the sharpest declines after the recent announcement by Tata Steel that it was looking for a buyer for its UK operations which puts at risk over 15,000 jobs. Industrial production was also weaker, falling 0.30% in February, down from a downward revised print of 0.20% in January and falling 0.50% on a year over year basis.