22
Dec
The surprise fall in inflation in the Euro zone reshuffles the cards
Entry into recession in Q4. Inflation declines faster than expected. New paradigm for ECB policy and euro bond yields. Favourable environment for securitized real estate and equities.
Key points
- Eurozone GDP finally slips into negative territory in Q3
- Technical recession expected in Q4 2023
- Leading indicators point to a fall in activity
- Confidence indices stabilize at low levels
- Surprisingly rapid decline in inflation
- Falling inflation is a boon for the ECB
- New paradigm for European bond markets
- Crushing yields affect the euro
- Rapid revaluation of securitized real estate
- Favorable backdrop for European equities
