Euro area Industrial Production Plunged to the Worst Since Records Started

Daily Forex Fundamentals | Written by ecPulse.com | Jun 12 09 13:44 GMT |

We have seen at the start of the week easing pace of contractions between investors along with remarkable improvements in confidence levels, despite some weak data seen this year in the industrial sectors where the Industrial Production contracted 1.9% on the month in April. The Europeans confidence improved in the second quarter in particular after fundamentals improved significantly starting from April, with sectors picking up some activity, but markets might not take this reading into consideration because the services sectors in the sixteen nations takes a bigger part than the manufacturing sector in the GDP reading. The contraction seen today in the Industrial Production today came worse than market expectations, falling 1.9% on the month worse than market expectations -0.4%, the year ending April contracted 21.6% coming worse the previous -19.3%, the worst since the data started. The International Monetary Fund projections that world economy will contract 3.0% this year. Where we all know that the economy had been struggling with the prolonged downturn in the world leading economies, triggered by the anchored levels of spending on the world exports and in particulate the sixteen nations; along with terminating the levels of new investments in the euro area. The European Central Bank projections that the growth and expansion will start taking place in the second half of 2010, but the improvement signs started to take place in the second quarter of the current year. However, the worst Credit Crisis since the Great Depression will need a prolonged time to mitigate especially we know the precipitation of this agony was the surging unemployment rates, which need years to ease down to previous levels. Nevertheless, my dear reader I have to note that improvements are taking place even with all the pessimism found in financial markets, what is taking place now is for sure better than the vast decline seen in the prior year. As now, policy markers are just waiting until markets starts to adjust it self alone using the endless interventions taken by Central Banks across the globe. Let seal this week with some optimism and joy because no more deterioration are taking place in the European financial markets are reforms by policy markers are taking place and new regulations are to be approved in the upcoming period. Even with those data, the European Indices decline as off 9:14 EST, Dow Jones euro stoxx lost 0.77% or 19.37 points reaching 2505.92 levels, the French CAC 40 lost 0.53% or 17.51 points reaching 3317.43 levels and finally the German DAX Index lost 1.03% or 52.89 point reaching 5054.28 levels. Ecpulse disclaimer: The content of ecPulse.com and any page in the website contain information for investors/traders and is not a recommendation to buy or sell currencies, stocks, gold, silver & energies, nor an offer to buy or sell currencies, stocks, gold, silver & energies. The information provided reflects the writers' opinions that deemed reliable but is not guaranteed as to accuracy or completeness. ecPulse is not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trades currencies, stocks, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, stocks gold, silver &energies presented should be considered speculative with a high degree of volatility and risk