A steady economic recovery in the United States has been bolstering European markets, which continue to face financial turmoil under the pressure of budget cuts.
On Tuesday, European stock markets rose despite record high unemployment rates in Eurozone states. The rise is attributed largely to a strong U.S. market, which has recently experienced steady growth.
U.S. factory orders rose 3% points in February, signaling an increased demand for American goods. That was the most significant increase in factory orders since September and surpassed analysts predictions.
In response, Britain’s FTSE 100 was up by 1.2 percentage points, while Germany’s DAX and France’s CAC-40 advanced by 1.9%.
Unemployment in the Eurozone hit records heights in January and February, at a staggering 12%. Consequently, governments are cutting expenses and budgets are being slashed. Furthermore, companies are discouraged from making new hires due to uncertainty in the market.
Cyprus has recently made headlines as the focus of financial uncertainty in Europe. The country is currently negotiating a bailout plan with the zone. It is expected that the county will experience a significant impact to its banking sector and will likely lead to a slump in the economy. Europe is currently working on a plan to mitigate the effects of Cyprus’ crisis.