French Economy Continues To Grow, Turkish Interest Rates To Fall

Germany: Industrial Production Data Surpassed Forecast

German factory orders were above analysts' forecast in April, while the trade surplus jumped to record-levels and indicated that Europe's largest economy is recovering at a strong pace.

As announced by the German Statistical Office Destatis, the industrial production, adjusted based on inflation and seasonal variations, increased by 0.9% on a monthly base, compared with the +0.5% that was expected by the analysts.

Meanwhile, the trade surplus rose in April to €22.3 billion, thanks to strong exports. According to a representative of Destatis, this is historically high. Exports increased by 1.9% since the beginning of March, while imports fell by 1.3%.

France: The Central Bank “Sees” A Slowing Growth

The French economy will continue to grow in the second quarter, although the pace will be lower compared with the beginning of the year, according to the Bank of France.

As the central bank is mentioning in its monthly report, the second biggest economy in the Eurozone will grow by 0.3% in the second quarter compared with the first, when it had recorded a respective growth of 0.6%.

The business climate index in manufacturing has increased in May to 99 points compared with the 98 points that it was in the previous month. On services, the relevant index remained unchanged at 95 points, while in construction increased in 93 from 92 points.

Turkey Reduced Deposit Rates In Foreign Exchange

The central bank of Turkey reduced deposit rates in foreign exchange after the collapse of the Turkish lira.

The Turkish currency dropped today at historic low levels against the dollar and the euro, the day after the election, in which AKP came well short of a majority in seats.

As the central bank announced, interest rates will fall tomorrow, from 4% to 3.5% for the dollar and from 2% to 1.5% for the euro.