Germany’s GDP grew by a surprising 0.7% in the fourth quarter last year – beating forecasts by more than twofold – and leading other Eurozone countries who also reported positive GDP data today. The Euro rallied, jumping above $1.14, while German bonds posted losses as investors shifted towards the equity market. Moreover, in other European countries such as Portugal, Italy and Spain, yields have fallen today as the economies begin to gain some traction thanks to persistently low oil prices and cheap credit.
Asian markets also experienced a positive trading session today on the wake of peace talks from Ukraine. The Hang Seng Index and the Shanghai Composite index rose 1.07% and 0.96% respectively while the Yen strengthened 1.6% against the USD.
Futures are currently pointing to a higher opening today as upbeat European data might dim worries about an American slowdown due to lacking international demand. Investors will also likely focus on the Michigan Consumer Sentiment Index numbers which will be released soon after markets’ open.