European Stocks Rise After German Factory Data

Factory orders rebound sharply in March, driven by a surge in demand from countries outside the eurozone, official data shows.

Author:: Laura Board
Publish date:: May 9, 2016 3:31 AM EDT

German factory orders rebounded far faster than expected in March, as exports surged.

European stocks opened higher on Monday after Federal Statistical Office data showed that new orders rose a seasonally and working-day adjusted 1.9% on February, well above the 0.7% increase analysts had expected and swinging back from a revised 0.8% decline in March.

Foreign orders surged 4.3% month-on-month, with the increase driven by countries outside the euro area. However, domestic orders decreased by 1.2%, the statistical office said.

In a sign manufacturers are building up capacity, orders for so-called capital goods, like industrial machinery, rose 4.0%.

The Dax was recently up 0.53% following the report at 9,924.67. In Paris the Cac 40 rose 0.42% to 4,319.22 and in London the FTSE 100 climbed 0.32% at 6,145.00.