19
Dec
The Eurozone economy is gaining power and asserting itself
Eurozone growth is stepping up. The Euro has stabilised temporarily. A rise in long-term rates is on the cards for 2018. European assets will outperform in 2018.
Key points
- The ECB seems particularly optimistic and is sticking to its monetary policy
- Growth forecasts have increased to +2.3% (2018)
- Inflation will remain modest in 2018 (+1.4%)
- No immediate risks of a rise in rates
- There are grounds for the rise in the Euro, but it should now be limited for a time
- European growth is picking up the pace but will still be behind the United States
- Leading indicators are even more optimistic
- Strongest growth in employment for ten years
- Almost euphoric climate of confidence
- Growth in long-term rates still temporarily hampered by monetary policy
- However, a rise in long-term rates is on the cards for 2018
- 30% discount on European stocks
- 100% more yield
