Germany’s economy stagnated in the 4th quarter
Germany released GDP data today, 14th February 2020 for the 4th quarter, showing there was no growth in Q4 2019 and that the annualised rate of growth was just 0.4%. A report in the FT estimates that this will drag down growth in the Eurozone to its slowest in 7 years. Not good.
Bad GDP figures rewarded by good DAX figures? -The German DAX was up at: 13785 – 10:15am 14th February 2020.
Eurozone GDP
The EU’s GDP – in the 19 countries sharing the Euro – expanded 0.1% quarter on quarter in the October to December period, as announced on 31st January, a 0.9% year on year gain. However, this was a downward revision from the previously estimated 1.0% growth.
The quarterly growth rate slowed compared to the 0.3% expansion in the third quarter because of a 0.1% contraction in the second biggest economy France and a 0.3% contraction in the third biggest Italy. Growth in Germany, the biggest euro zone economy, stagnated.
UK GDP
The UK announced economic growth, GDP, in Q4 2019, was zero and 1.1% year on year. Not good, but maybe not as bad as it could have been given the political turmoil surrounding the economy – (or maybe that helped)?
Poor set of figures by anybody’s standards – and yet many European stock markets reach all time highs – setting new records? The DAX touched 13785 today.
Bad GDP results = good stock markets.
Why?
How?