15 May 2012: Germany’s GDP rises, China’s boom starts to unravel

  • Strong German GDP eases some fears, Commodities under pressure again: Germany’s strong GDP results are counteracting some of the fears about Greece’s euro exit. The euro picked up 0.2% as Germany announced an expansion of 0.5% in their economy on 2012 Q1
  • Stocks: FTSE All World is down 0.9% to a 4-month trough as FTSE Eurofirst rose 0.5% after losses in the last 6 sessions; In Asia, FTSE Asia Pacific lost 0.9% to almost a 4-month low while Tokyo lost a 0.8%; S&P 500 is expected to rally 0.3% later in the day; FTSE 100 has opened 0.3% higher today and is at 5484
  • Currencies: Euro has perked up 0.2%against Dollar at $1.2844
  • Debt: German Bunds moved off their low to 1.48%; US 10-years are at 1.79%
  • Commodities: Brent Crude has recovered 0.5% to $112.17/barrel; Copper lost another 0.4% to $3.54/pound; Gold loses 0.1% at $1553/ounce
  • Moody’s cuts credit ratings for 26 Italian banks
  • China’s investment boom begins to unravel as the economy is set for a slowdown
  • Coty drops $10.7bn bid for Avon
  • Facebook are set to raise their IPO price range
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