European markets cheer German factory orders and move higher

FXstreet.com (Barcelona) - The German DAX 30 (+1.08%), the French CAC 40 (+0.68%), the Italian FTSE MIB (+1.46%), the Spanish IBEX 35 (+0.95%), and the rest of European equity indexes are edging higher on Tuesday, as investors celebrate surprising German factory orders figures for March, coming in against market consensus. Data grew by 2.2% in March, instead of contracting -0.5% as expected. February data was revised slightly lower from 2.3% to 2.2%. German factory orders in year-on-year basis dropped further, from -0.2% (revised from 0.0%) to -0.4%, but that came in better than the -2.9% expected. Details showed broad-based gains from the domestic side (+1.8%), as well as exports (ex-Germany EZ orders +4.2% and non-EZ orders +1.9%). Earlier, the French industrial output not only contracted as predicted, but fell by -0.9% instead of the market consensus of -0.3%.

European Commissioner Olli Rehn said that tackling funding problems in Europe is the next challenge and IMF’s Lagarde said that central bankers must find out why banks are not lending.

Futures for the American S&P 500, Nasdaq 100 and Dow Jones 30 are signaling a higher opening by 0.10%-0.20% ahead of US IBD/TIPP economic optimism and Redbook Index, as well as consumer credit change.