16th August 2011
The German Federal Statistics Office reported that Germany grew by just 0.1 per cent in the three months to June while the statistics for the first quarter of the year was revised down from 15 to 1.3 per cent.
Ft.com quotes Carsten Brzeski, economist at ING in Brussels, saying the latest data marks a "return to normality" rather than disaster. But the question was whether this was the beginning of the end of the German economic miracle.
On Friday, France posted zero growth which, taken with the German figures, has compounded fears of a global crisis.
Here Morningstar reports on the market falls. The FTSE was trading 1% lower, while France's CAC and Germany's DAX fell 1.6% and 1.8%, respectively.
FtAlphaville runs a graph of the German position and suggests that the global recovery has gone caput.
Previously in the day markets had rebounded across Asia before falling back as MarketWatch reports here.
South Korea's Kospi surged 4.8% to 1,879.87 for its biggest one-day percentage gain since January 2009. The Japan's Nikkei Stock Average ended 0.2% higher at 9,107.43. Hong Kong's Hang Sen dropped 0.2% to 20,212.08, China's Shanghai dropped 0.7% to 2,608.17.
However, all eyes are on the meeting today between French President Nicolas Sarkozy and Angela Merkel with a press conference due later. The growth figures won't have lightened the mood.
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