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EWG Fell despite Release of Higher German IFO Conditions

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French GDP rises by 1.3%

The French GDP (gross domestic product) rose by 1.3% in 1Q16—slightly below expectations of 1.4% growth on an annual basis. On a quarterly basis, France’s economy grew by 0.6%. It was in line with the estimated forecast and growth of 0.4% in the preceding quarter. The iShares MSCI France ETF (EWQ) fell by 11.3% at the end of the day on June 24, while the iShares MSCI Eurozone ETF (EZU) fell by 11.5%. The decline was due to a sell-off in markets following the United Kingdom’s exit from the European Union.

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German IFO business climate releases positive, EWG falls

The German IFO business climate rose to 108.7 points in June—compared to an upwardly revised figure of 107.8 in the preceding month and above expectations of 107.5. IFO current conditions rose to 114.5 points in June—compared 114.2 in May and expectations of 114.0. IFO expectations were also higher for June at 103.1—compared to 101.7 for the previous month. The iShares MSCI Germany ETF (EWG) fell by 9.8% at the end of the day on June 24. The SPDR Euro Stoxx 50 ETF (FEZ) fell by 11.7%.

Belgian industrial production rises, Italian retail sales fall

Belgian industrial production rose by 3.4% on an annual basis in April—compared to 1.7% growth in March. On a monthly basis, industrial production growth in Belgium was flat in April—compared to a contraction of 0.2% in the previous month. Retail sales in Italy also contracted by 0.5% on an annual basis in April—compared to a rise of 2.1% in March. The iShares MSCI Belgium Capped ETF (EWK) fell by 8.0% at the end of the day on June 24, while the iShares MSCI Italy Capped ETF (EWI) fell by 15.0%.

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