Whilst there is a significant fear factor for copper producers and a forcast reduction in trade with China due to their stockpiling, there was some positive news out of Germany overnight which may offset the reliance on the chinese. Here are some excerpts from an article posted on Bloomberg.
Germany May Shake Off Recession as Factories Ramp Up Production
By Simone Meier
July 8 (Bloomberg) -- Germany may be shaking off its worst recession since World War II as factories ramp up production to meet rising export orders.
The government said today that industrial output rose 3.7 percent in May from April, the biggest gain in almost 16 years. Yesterday, it said manufacturing orders jumped 4.4 percent in May, the most since June 2007 and nine times the 0.5 percent gain forecast by economists.
“Soft-data green shoots have started carrying over into hard economic data,” said Andreas Rees, chief German economist at UniCredit MIB in Munich. “After the summer break, the odds are rising that the German economy will manage a comeback into growth territory.”
German car makers in particular are increasing output as a government incentive to trade in old vehicles boosts sales at home and depleted global inventories bolster export demand.
Volkswagen AG, Europe’s largest carmaker, said on July 3 that car deliveries rose for a second straight month in June. MAN SE, Europe’s third-largest truckmaker, said the same day it probably broke even in the second quarter as the market for commercial vehicles showed signs of recovery.
The increase in factory orders in May was driven by an 8.2 percent gain in exports to countries outside the euro region. Domestic demand rose 3.9 percent.
Governments worldwide have announced about $2 trillion in economic stimulus programs to help revive economic growth. Munich-based Siemens AG said on June 22 this may generate orders of about 15 billion euros ($21 billion) for Europe’s largest engineering company."
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