Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

While you were sleeping: Germany's signs of recovery

While you were sleeping: Germany's signs of recovery

Jan 22 (BusinessDesk) – Equities in Europe advanced as Germany's central bank said the nation's economy is showing signs of recovery in the first quarter of the year.

"The largely stable labour market and a better outlook for output suggest that the economic weakness won’t last all that long,” according to the Bundesbank in its monthly report released today.

The bank forecasts the economy to grow 0.4 percent in 2013 year and 1.9 percent in 2014. Europe's largest economy contracted 0.5 percent in the fourth quarter of 2012, data last week showed.

Meanwhile, euro zone finance ministers gathered for their first meeting of the year. At the top of their agenda is the financial situation in several peripheral economies including Spain. In addition, the ministers will be discussing how to provide financial help directly to the region's banks.

Europe's Stoxx 600 Index ended the day with a 0.3 percent increase from the previous close. Germany’s DAX and France's CAC 40 both climbed 0.6 percent, while the UK's FTSE 100 rose 0.4 percent.

Transportation remains snarled in the UK and France as a winter storm buffets the area, renewing concerns about the economic outlook. In Germany, a weekend electoral loss for Chancellor Angela Merkel's coalition could block efforts for her government to pass legislation.

US markets were closed for the Martin Luther King Jr holiday on Monday as President Barack Obama celebrated the official start of his second four-year term.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Republicans are gearing up for a Wednesday vote that is expected to provide temporary relief for the US Treasury's debt ceiling, expected to be reached as early as next month.

The yen rose against the greenback, climbing from the lowest level since June 2010, amid expectations the Bank of Japan will announce further monetary policy easing measures.

The central bank's two-day policy meeting is expected to result in a doubling of the inflation target and an expansion of its asset-purchase program. The BOJ will increase asset purchases this week, according to all 23 economists in a Bloomberg News survey, with the median estimate for a 10 trillion-yen increase.

"It’s hard to see what the BOJ could say … that would exceed market expectations,” Daragh Maher, a currency strategist at HSBC Holdings in London, told Bloomberg News. “It’s a natural positioning ahead of the Bank of Japan’s meeting given the yen’s decline.”

(BusinessDesk)

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.