US factory orders rise but shrinking eurozone manufacturing may get hit further by Cyprus

Economic data on Tuesday were mixed.

In the US, a report showed that factory orders rose 3.0 percent in February, more than reversing a 1.0 percent decline in January and providing an indication that US economic growth is gaining momentum.

In contrast, manufacturing in the euro area worsened in March with Markit's manufacturing PMI falling to 46.8 in March from 47.9 in February. Chris Williamson, chief economist at Markit, warned in his report that there is concern that the “events in Cyprus . . . will have hit demand further in April”.

Another report on Tuesday showed that unemployment in the region stayed at a record high of 12.0 percent in February, unchanged from January.

In the UK, manufacturing also contracted, although the Markit/CIPS manufacturing PMI did rise to 48.3 in March from 47.9 in February. Another report from the UK showed that mortgage approvals fell in February but the value of mortgage lending rose, as did lending to consumers.

Meanwhile, the saga in Cyprus may not be over despite the country receiving a bailout deal. Tuesday saw Finance Minister Michael Sarris resign amid a probe into the country's financial crisis.

And Cumberland Advisors' David Kotok reminds us: “Contagion starts small, and we may now be witnessing one gathering momentum in the Eurozone.”