The German jobless rate ticked up in October, and is now at its highest rate since April 2011. The level of inflation dropped by 0.2% in October, worse than expected, and both reports are signs that the economy is in decline.
Despite these disappointing results, the DAX is up 0.3% due to the eurozone retail purchasing managers index (PMI), which came in at 48 in November compared with the October reading of 47.7. The overall positive sentiment has boosted German stocks, despite low trading volumes and market volatility as a result of Thanksgiving.
The Italian market index is up 1.1% after the cost of borrowing for the Italian government dropped from 4.11% to 4.01%. This tells us that investors are more confident in the government’s ability to repay its debts, which is another positive indicator for the region.