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China, UK data upbeat; Russia to cut US debt share
(Agencies)
Updated: 2009-06-11 09:36 In Asia, Japanese machinery orders fell unexpectedly in April. French industrial output, too, fell more sharply than forecast, following news of weak German output Tuesday. "It seems that we are really hitting rock bottom now and there doesn't seem to be much further to go," said Alexander Law, chief economist at consultancy Xerfi in Paris. "We're looking toward a technical recovery in the third quarter and we're really in the last drags of this recession."
Concerns that the consumer remains under pressure also weighed on US stocks as the price of oil topped $71 a barrel for the first time in seven months. Although there are signs demand for crude could be improving, higher gas prices could further hurt recession-weary consumers. The April data showed US exports weakened again, falling 2.3 per cent to $121 billion. Imports also declined for a ninth straight month but by a smaller amount than exports, resulting in a wider trade gap of $29.2 billion. BRITAIN SURPRISES ON UPSIDE The surprise rise in UK industrial output in April raised the prospect that Britain could be the first major industrialised nation to beat recession. The Office for National Statistics said industrial output rose 0.3 percent on the month, the first increase since February 2008. However, doubt remains about how sustainable any British recovery will be because banks remain reluctant to lend. British interest rates could stay low for some time, Bank of England policymaker Kate Barker said. "The really important question is (whether) there's a pick-up in the economy and if people can sustain that so it continues on to autumn," she told the Leicester Mercury newspaper. The euro zone's third biggest economy, Italy, reported that its industrial output grew again in April after 11 consecutive monthly declines. "It's better than expected but it needs to be put into perspective," said Bank of America's Guillaume Menuet. "Italy is one of the countries where output has fallen most." European stocks rose on Wednesday, boosted by banking shares on the back of news that top US banks have been cleared to repay state aid, while oil stocks benefited from crude oil's rise.
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