German factory orders rise faster than expected; Asian shares fall on tech pullback – business live
Germany's factory orders rose more sharply than expected in June, offering a bright spot for Europe's largest economy despite disruption linked to the Iran war, even as Rheinmetall, the country's biggest defence company, cut its outlook after losing a major government contract. The mixed signals came as Asian shares fell amid a pullback in technology stocks and crude oil prices held below $80 a barrel, setting a cautious tone for global markets on Thursday.
New German manufacturing orders climbed 3.1% month-on-month, far outpacing analysts' forecasts of a 0.3% rise, though orders dipped 0.5% when large contracts were excluded; over the three months to June, orders were up 1.3% on the previous quarter. Elsewhere, UK housebuilder Persimmon lifted its full-year outlook, reporting a 15% rise in pre-tax profit to £168m and a 13% increase in homes built, and said it was well placed to benefit from prime minister Andy Burnham's housing agenda, while warning of further cost pressures from Middle East-related inflation in 2027.
- German factory orders jumped 3.1% in June, beating forecasts
- Rheinmetall cuts outlook after losing a government contract
- Persimmon raises guidance on 15% profit rise, cites Burnham's housing plans
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Germany's factory orders figures come from its official statistics office and are watched closely because manufacturing has long been the backbone of the country's economy, Europe's largest. Orders had been under pressure from weak global demand and, more recently, disruption tied to the conflict involving Iran, so any pickup is seen as a signal of whether industry is stabilising. Rheinmetall, Germany's biggest defence firm, is a separate but related story: its business has boomed on higher military spending, making its decision to cut its outlook after losing a government contract notable.
The wider market context is that shares across Asia and other regions often move together based on shared worries, in this case a pullback in technology stocks, which had been driving much of the recent rally in global markets. Oil prices, which affect costs for businesses and households worldwide, have been hovering below $80 a barrel.
Separately, Persimmon is one of Britain's largest housebuilders, and its results are often used as a gauge of the health of the UK property market and construction sector. References to a prime minister's "housing agenda" relate to government policy on building more homes, which can affect demand for housebuilders' output.
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