German Industrial Production Drops Unexpectedly

Ibeth Rivero

France recently set the alert level to maximum, while the German government is currently tightening restrictions in places like Berlin.

GermanyAccording to the German Federal Statistical Office, industrial production contracted by 0.2 percent in August (month-to-month) way below the analysts' expectations who foresaw it to expand by 1.5 percent and below July's figure, which was at 1.4 percent. In yearly terms, industrial production dropped by 9.6 percent in August, after dropping by 9.8 percent in July.

The French Ministry for economy and finance reported that exports in August amounted to 35.36 billion euros, after amounting to 35.57 billion euros in July. Imports in August were at 43.07 billion, after being at 42.61 billion in July. In terms of the current account, France had a 4.7 billion euros deficit, improving from July's 5.7 billion deficit and better than expected, as analysts foresaw it to reach an 8.9 billion deficit. The trade balance was at -7.71 billion euros in August, after being at -7.04 billion euros in the previous month.

In Spain, industrial output contracted by 5.7 percent in August (year-to-year), remaining in line with the analysts' expectations and improving from the previous month's -6.2 percent.

So far 5,529,673 coronavirus cases have been reported in Europe, while the death toll stands at 226,823. Russia leads in the number of infections, with 1,237,504 reported cases and 21,663 total deaths, followed by Spain, France, and the United Kingdom. The number of cases have been surging across the continent. France recently set the alert level to maximum, while the German government is currently tightening restrictions in places like Berlin.

Yesterday, the European stock markets mainly closed in positive territory. The DAX gained 0.61 percent, closing the session at the 12,906.02 level, followed by the Euro Stoxx 50, which closed at the 3,233.30 level, gaining 0.41 percent during the session. The CAC 40 gained 0.48 percent, closing the session at the 4,895.46 level, followed by the IBEX 35, which closed the session at the 6,936.20 level, gaining 1.44 percent.

By 7:55 GMT, the euro increased by 0.26 percent against the US dollar, hitting the 1.1765 level. On the other hand, the euro decreased against the pound sterling by 0.08 percent, falling to the 0.9101 level.

Trump Ends Stimulus Talks With Democrats

The United States President, Donald Trump announced his decision to stop negotiating with the Democrats, promising to pass a major stimulus bill after the elections.

I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major stimulus bill that focuses on hardworking Americans and small business,”  he posted on his Twitter account.

The speaker of the United States House of Representatives, Nancy Pelosi lamented the decision, saying that the White House was in complete disarray,”  and suggested that the steroids that the president is taking may be clouding his judgment.

The next presidential elections are set to take place at the beginning of November when Americans will have to decide between reelecting Trump or choosing the Democrat candidate, Joe Biden.

Yesterday, the US stock markets mainly closed in negative territory. The Dow Jones Industrial Average dropped by 1.34 percent during the session, closing at the 27,772.76 level, while the S&P 500 went down by 1.40 percent, closing the session at the 3,360.95  level. The Nasdaq 100 dropped by 1.89 percent during the session, closing at the 11,291.27 level. The NYSE Composite remained unchanged, closing the session at the 12,837.88.

Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.

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