Stocks cling to fifth day of gains after weak German data
By Marc Jones
LONDON (Reuters) - World stocks were left clinging to a fifth day of gains on Tuesday as weak data from Europe's largest economy Germany and a dip in commodity markets eroded a recent global rebound.
Asian markets had been lifted to a two-week high by what looks to set to be the most generous Trans-Pacific trade deal in a generation but the momentum failed to reach Europe's main bourses. [.EU]
London's FTSE .FTSE and Germany's .GDAXI were both down 0.1 percent, the CAC 40 in Paris .FCHI was flat while the euro EUR= and sterling GBP= were firmer. [/FRX]
The MSCI All World index of global stocks .MIWD00000PUS was up 0.2 percent.
Nerves about the health of the global economy were rattled by an unexpected fall in German industrial orders as demand from China and regions outside Europe weakened.
Orders for German goods fell 1.8 percent on the month, confounding expectations for a 0.5 percent rise. The fall came before the VW emissions test scandal broke, which economists say may have done more damage to German exports.
"The decline in orders from abroad paints a dim picture," said Thomas Gitzel, an economist at VP Bank. He expected the Chinese economy to stabilize, which could help German industry.
However, the recent rebound in commodity markets came to an abrupt halt. Oil dropped back after Brent crude LCOc1 had taken a run-up at $50 a barrel for the first time in two weeks [O/R], while copper CMCU3 and other industrial metals fell for the first time in three days. [MET/L] Continued...