Sentiment found support after official data earlier showed that Germany’s economy slowed less-than-expected in the second quarter, as exports and household spending helped to fend off the impact of the sovereign debt crisis on Europe’s largest economy.
German gross domestic product rose 0.3% in the three months to June, beating expectations for a 0.2% rise and following an increase of 0.5% in the first quarter.
Yesterday, Stocks ended slightly lower as fatigue set in after a six-day rally and disappointing Japanese growth data provided a fresh reminder of the headwinds facing the global economy. It looks as if the market shifts direction on a daily basis and without any major developments. The market is likely to stay this way at least for the short term.
Later in the day, the euro-zone industrial production as well as preliminary data on second quarter gross domestic product is expected. In addition, the ZEW Centre for Economic Research is expected to publish a report on economic sentiment in Germany and throughout the single currency bloc.
Out of the US, the official data on retail sales and producer price index, followed by data on business inventories.
GOLD dropped more than $10 on the open of the session in Asia today after the price was unable to sustain above yesterday's high of $1626. The gold price fell throughout the entire US session yesterday with the general market as concern about the Asian economy weighs in. Japan reported a low annual GDP growth of 1.4% against an expected 2.3% growth. The gold prices gave some of the losses reported earlier after the better-than-expected German and French economic growth data.