German Market Outperforms Rest of Europe

German shares edged higher on Tuesday, outperforming mostly flat European stocks, as strong trade data from the region’s largest economy revived investor appetite for the Dax index.

Broader market sentiment, however, was still undermined by a crisis in Ukraine, where confrontation between Kiev and Moscow showed no sign of easing.

Frankfurt’s Dax blue-chip index, up 0.3 percent, bucked the trend after Germany reported seasonally adjusted exports and imports both rose more than forecast in January. The bounce was led by stocks exposed to the European economy, such as car maker VW and consumer-goods maker Henkel .

The Dax had fallen 2.9 percent in the previous two sessions, dragged down by worries about Ukraine and by disappointing Chinese trade data.

“The German trade figures were very solid and do point to a continuing recovery combined with an acceleration in growth in 2014,” said Markus Huber, a senior sales trader at Peregrine & Black. “Much will depend (on) how long the crisis in the Ukraine will drag on and if harmful sanctions and counter-sanctions will be put in place.”

Russia’s moves to take over Crimea have led to plans for a referendum on March 16 on whether to secede from Ukraine and join Russia. Those plans have provoked condemnation from western countries and the threat of international sanctions against Russia.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza