German stocks have experienced the biggest surge in more than a week as reports of Euro-area manufacturing came out stating that it contracted less than earlier expectations. Factory orders in US also increased as well. The benchmark gauge of Germany, DAX jumped up by 1.3% and is currently at 7894.29. In 2013, till date, the gauge has increased by 3.8%. On the other hand, the broader HDAX Index increased by 1.3%. Incidentally, Western European markets were closed on both yesterday and 29th March – due to Easter. The overall trading volume was 26% less than the average of the last 30 days.
Joachim Fels, who heads the Global Economics Department of Morgan Stanley, stated that the global economy bottomed some time towards the end of 2012. He added that the markets are still in the twilight zone for global growth. Though no recession can be anticipated, any strong recovery has not happened either. However, the current conditions in US suggest that a vigorous recovery can be expected in the 2nd half of 2013.
A gauge which measures manufacturing in the 17-nation Euro region declined to 46.8 in March, from a value of 47.9 in February. The initial estimate was of 46.6. Manufacturing in Germany contracted less than forecast in March as well. A gauge which measures the activity declined to 49 from its previous value of 50.3 in February. Incidentally, 50.3 mark the highest reading of the gauge in last 13 months. According to economists, the reading would have been 48.9.
On the other hand, factory orders in US increased 3% in February after a 1% drop experienced in January. The data was released by the US Commerce Department and it is the better than the forecasted increase of 2.9%.
Among companies, EON SE increased to a 10-week high as HSBC Holdings increased its rating to neutral from underweight. Each EON share costs 14.05 Euros now after advancing by 3.2%. On the other hand, the largest engineering company in Europe, Siemens AG rebounded after experiencing decline for 5 straight days. By weighting, Siemens is the biggest stock in DAX and it increased by 1.4% to 85.22 Euros per share.
Flavors and Fragrance supplier Symrise AG increased by 3.5% to 32 Euros per share, marking its highest price on record. RWE AG and Munich Re surged ahead by 1.5% and 3% respectively.