European Equities Higher With DAX 0.13% Up
European shares are mostly higher, with banks leading the surge on expectations of higher interest rates amid speculation the European Central Bank may soon start to wind down its stimulus. The German DAX stock index is trading at 12.847, having gained 0.13% more. Today’s economic calendar marks Eurozone Q1 GDP and German Factory Orders data. The US will publish jobless claims data. Investors are also focused on the Group of 7 meeting, starting on Friday in Canada.
Data from the Eurostat showed, that the Eurozone gross domestic product grew 0.4% in the first quarter, slower than the 0.7% expansion seen a quarter ago. The rate came in line with the flash estimate. On a yearly basis, GDP growth slowed to 2.5%, as estimated, from 2.8% a quarter ago.
Factory orders in Germany unexpectedly fell in April. Data from the Destatis showed, that factory orders fell by 2.5% in April, more than a drop in March by 1.1% (revised from -0.9%). Economists had expected orders to increase by 0.8%. The decline was mainly due to the reduction in internal orders by 4.8%. At the same time, foreign orders decreased only by 0.8%. On an annualized basis, production orders fell slightly by 0.1% in April, as opposed to an increase of 2.9% in March. Economists forecast an increase of 3.6%.