GDP contraction of -1.5% in Q1. Outlook reduced to +4% for the year. ECB accelerates its PEPP and could inject 60 bn euros/month. PMIs are optimistic. Interest rate increases temporarily curbed. Weakening euro.
- European GDP expected to fall by a further -1.5% in Q1
- The glaring failure of the vaccination campaigns calls for new support measures
- More optimistic leading indicators bolstered by Germany’s manufacturing PMI
- ECB steps up its action and urges governments to strengthen their fiscal policies
- New upward trend in interest rates temporarily curbed by ECB action
- The euro is logically suffering from an unfavourable growth differential
- European equities are already approaching their year-end price targets