Please ensure Javascript is enabled for purposes of website accessibility

Euro Neighbors Sapping Germany's Strength

By Matt Koppenheffer – Updated Apr 6, 2017 at 5:55PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Get the lowdown on the big news and what it means for your portfolio.

The big macro can cause big moves in the market. What does today's headline macro news mean for your portfolio?

What's happening: Germany's Economy Ministry announced that industrial orders dropped by 4.3% in September from August. Orders from within Germany fell 3%, while orders from outside of Germany dropped 5.4%, led by a 12.1% dive in orders from other Eurozone countries.

In plain English, please: Germany is a manufacturing and exporting powerhouse. If Superman had kryptonite, Germany's threat is an industrial slowdown. This could be a worrisome sign because if the region's Superman watches its strength get sapped, it may lose its appetite to take everyone else's fiscal problems on its shoulders.

Obviously, the most troublesome aspect of the release is that orders from the eurozone fell so drastically. We need to bear in mind, too, that these are the numbers from September, and the uncertainty and fear in the region was only turned up further in October.

Stocks to watch: The economic health of Germany has wide-ranging impacts for the eurozone and the rest of the world. However, investors may want to pay particular attention to companies based in Germany in light of this report. For U.S. investors, that means individual stocks like Siemens (NYSE: SI), Deutsche Bank (NYSE: DB), Aixtron (Nasdaq: AIXG), and SAP (NYSE: SAP), as well as the broad New Germany Fund (NYSE: GF).

Want to keep up to date on these stocks?

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Fool contributor Matt Koppenheffer owns shares of Siemens, but does not have a financial interest in any of the other companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Deutsche Bank Stock Quote
Deutsche Bank
DB
$8.34 (-5.97%) $0.53
Siemens Aktiengesellschaft Stock Quote
Siemens Aktiengesellschaft
SIEGY
$47.86 (-2.64%) $-1.30
SAP Stock Quote
SAP
SAP
$79.47 (-2.33%) $-1.90
The New Germany Fund, Inc. Stock Quote
The New Germany Fund, Inc.
GF
$7.17 (-3.05%) $0.23

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
339%
 
S&P 500 Returns
109%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.