Dow and S&P back to July’s Highs; Germany’s Economy Contracts in 4Q

 On Tuesday the Dow and S&P reached their highest level since July 2011. The Dow rose 56% to close at 12,462 while the S&P rose .89% to close at 1,292.

On Wednesday morning it was announced that Germany’s economy contracted by .25 % in the 4 Q. Germany has the largest economy in Europe.

Germany’s 2011 GDP figures show that Germany’s economy grew by 3% compared to 3.6% in 2010.

Riccardo Barbieri, chief economist at Mizuho International told Bloomberg’s Maryam Nemazee on the Pulse, “We will likely see weakness going into 2012 with Germany’s GDP.” He later noted that Germany’s economy is resilient and solid but will likely see 0% growth for the new year on average. 

“Whether Germany is an engine for growth in Europe, it is more debatable” Barbieri said.  

Germany will auction 4 billion of 5 yr. bond notes later today.

A record amount of euros- 485.9 billion- were parked at the ECB in overnight deposits.

Merkel and Monti will meet today in Berlin. Sarkozy and Lagarde will hold talks in Paris.

* Correction- Yesterday’s post about the Nokia Lumia 900 briefly contained an incorrect statement about curved glass on the front screen. The Nokia Lumia 800 has curved glass- not the Nokia Lumia 900.

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