European economy showing positive signs

European economy is showing signs of stabilization after shrinking at the fastest pace in at least 15 years in the first quarter. Markit’s manufacturing index rose to 42.4 this month from 40.7 in May, according to the latest report. The services index fel

German and French business confidence rose for a third month in June, reports showed this week. European Central Bank President Jean-Claude Trichet said this month the worst of the recession may be past after the ECB cut interest rates to a record low and pledged to buy covered bonds to fight the crisis.