Moderate data that came out in the first half of the day on the economy of Germany and France helped to keep risky assets in their positions. And an excellent report on retail sales in the UK led to a sharp increase in the British pound against the US dollar.
In the morning, a report was released from the statistics agency, which indicated a slight slowdown in the German economy in the first quarter of this year compared to the last quarter of last year.
According to the data, Germany's GDP in the first quarter of this year compared to the fourth quarter of 2017 increased by 0.3% and compared to the first quarter of last year it added 2.3%. On an annualized basis, Germany's GDP in the first quarter grew by 1.2%.
Germany's exports decreased by 1.0% in the first quarter and imports hiked by 1.1%. Personal consumption for the first quarter increased by 0.4%.
The traders did not see anything new in this report respectively and the market reaction was appropriate. It has been repeatedly noted that the economy of the eurozone in the first quarter of 2018 significantly reduced the growth rate, which was taken into account in the quotations of risky assets.
According to the published data of the research group GfK, consumer confidence in Germany in June may weaken.
The leading index of consumer confidence in Germany in June this year fell to 10.7 points from 10.8 points in May. Economists had expected the June index to remain unchanged.
The level of confidence in the manufacturing sector in France remained unchanged in May.
According to the report of the statistics agency, the index of sentiment in the manufacturing sector in May this year was 109 points, unchanged from April. Economists predicted a decline in the index to 107 points.
Today, there is information that following the duties on steel and aluminum in the White House, a new duty is being developed that will cover the automotive industry. It is expected that in the near future, the administration of Donald Trump will introduce a number of new import duties on cars on the basis of national security laws. The fee may be 25%.
The British pound rose on good data on retail sales in the UK for the month of April this year after a significant slowdown in March amid bad weather. Such a report must necessarily support the economic indicators for the second quarter.
According to published data, in April 2018, in comparison with March, retail sales grew by 1.6%. Economists had expected that in April, in comparison with March, retail sales will grow by 0.8%.
