German business confidence unexpectedly improved in June, suggesting Europe’s largest economy is weathering the region’s worsening sovereign debt crisis and slowing global growth.

The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, increased to 114.5 from 114.2 in May. Economists forecast a drop to 113.4, the median of 39 estimates in a Bloomberg News survey showed. The index remains close to a record high of 115.4 posted in February.
German companies have boosted output and hiring, pushing the jobless rate to the lowest in two decades. The Bundesbank on June 10 raised its economic growth forecast for this year, calling the recovery “broad based.”
-----------------Durables orders in U.S. probably climbed in May
Orders for durable goods probably climbed in May after slumping the prior month, easing concern manufacturing will share in an extended U.S. growth slowdown, economists said before a report on Friday.
Bookings for goods meant to least at least three years increased 1.5 percent after a 3.6 percent drop in April that was the biggest in six months, according to the median of 69 estimates in a Bloomberg News survey. Another report may confirm the world’s largest economy cooled in the first quarter.
Factories will probably rebound as parts shortages stemming from the disaster in Japan wane, fuel costs ebb and a drop in the value of the dollar combined with growing economies overseas push exports up.
-----------------------Turkey holds interest rate, lira plunges to 2-year low
Turkey’s central bank Thursday held its key interest rate at a record low, pushing the lira to a two-year low against the dollar, as policymakers reaffirmed their commitment to pursue an unorthodox monetary policy.
The central bank held the one-week repo interest rate at 6.25% for the fifth straight month, according to a statement on its website. The bank didn’t immediately clarify whether it would alter the overnight borrowing and lending rates, which stood at 1.5% and 9% respectively.
The decision to keep the benchmark rate on hold had been broadly expected but comes amid gathering market skepticism that such a policy is aggravating imbalances in Turkey’s economy.