What's going on?

On Monday, the European economy got some further good news when it was reported that German factory orders jumped by a higher-than-expected 1.9% in March.

What does this mean?

The boost in orders was being driven by demand outside of Europe: factory orders for European customers actually fell by 1.2% but foreign orders increased by 6.2%.

It�s not all been good news for Europe lately: a tepid measure of wider economic health was released last week. But the factory orders data is one of a few recent reasons to be cautiously optimistic about Europe�s economy right now.

Why should I care?

For you personally: Hopefully this is a sign that the stimulus is working – otherwise it could be a real problem. The European Central Bank (the ECB) has enacted a number of extreme measures in an attempt to boost the eurozone�s economy in the past 12-18 months (including measures that weakened the value of the Euro, thus making it easier for German factories to sell abroad). Let�s hope that the good data we�ve seen recently is a sign of a sustainable pickup in European economic growth because, if not, there�s (arguably) not much more that the ECB can do to help – and that would be concerning both for stocks and the economy (i.e. your job pay and job prospects).

For markets: The recent stronger Euro is going to make it more difficult for the eurozone�s economy. The Euro has reversed and has actually strengthened versus the dollar in recent months (it�s gone from a low of $1.06 per �1.00 to a current level of $1.14). That makes it more difficult for European companies to make money by selling goods overseas. The good news for Europe is that positive data is still coming out despite this. The bad news is that the impact of the currency�s increased value might just be taking a few months to take effect � and it could start being reflected in the economy soon.