Eurozone’s GDP met expectations
The Eurozone’s seasonally adjusted GDP rose by 1.6% on an annual basis in 2Q16—in line with estimated forecasts and against 1.7% growth recorded in the previous quarter. On a quarterly basis, the Eurozone’s economy expanded by 0.3% in 2Q16—in line with expectations and 0.6% growth in the previous quarter. Although the economy is gaining momentum, the acceleration is expected to be slow due to the impact of the Brexit vote. On a quarterly basis, the German economy rose by 0.4% in the second quarter—above expectations of 0.2% growth and below the previous quarter’s growth of 0.7%. The iShares MSCI Eurozone (EZU) rose by 0.06% and the iShares MSCI Germany (EWG) fell by 0.11% on August 12.
German inflation rose by 0.4%
According to the flash estimate from Eurostat, consumer prices in Germany rose by 0.4% on an annual basis in July, following a rise of 0.3% in June and in line with estimated forecasts. They reached the highest level since January this year. Higher prices for food and services offset the decline in energy prices. European Central Bank Chief Mario Draghi will get some breathing space as the central bank has been keeping a “wait and see” stance. The SPDR Euro Stoxx 50 (FEZ) rose by 0.03%, while the iShares Currency Hedged MSCI Germany (HEWG) fell 0.16% on August 12.
Eurozone industrial production slowed down
Industrial production in the Eurozone rose on a sluggish note by 0.4% in June—compared to a rise of 0.3% in the previous month and expectations of 0.7% growth. On a monthly basis, industrial production in the Eurozone rose by 0.6% in June—compared to a contraction of 1.2% in the previous month. The WisdomTree Europe Hedged Equity (HEDJ) fell 0.09% on August 12.