Gross domestic product figures released from Germany this morning show that the core Euro Area economy is facing substantial headwinds after the revelation that quarterly GDP expansion slowed from 0.70% to 0.30%, more than the expected drop to 0.50%. Annualized GDP was also disappointing, printing at 1.10% versus expectations of 1.20% growth. The one silver lining in the data was inflation, with CPI figures climbing back to unchanged after treading into negative territory the prior month. Although on the rebound, the DAX continues to broadly trend to the downside in an equidistant channel pattern as the latest data raises concerns to the outlook. Euro Area aggregate GDP is due out later and expected to grow more than the prior period, highlighting that growth is coming from a recovery in other regional economies like France.
European Growth Metrics Mixed
Daily Analysis - 13/05/2015