06
Dec
Slight recovery in the Eurozone despite weakness in Germany
GDP up +0.2% in Q3. Germany holds out on the edge of recession. ECB maintains status quo. Change of outlook for long-term rates. Valuations in Europe’s favour.
Key points
- Q3 slightly better than expected in the Eurozone
- Growth in Q3 driven by consumption, government spending and exports
- Leading indicators leave room for doubt
- Consumer confidence is not benefitting from reduced trade tensions
- Germany holds up despite the collapse of its industrial sector
- No new rate cuts by the ECB
- Possible strengthening of the euro
- Real yields slightly less negative but still conducive to investment
- Sharp rise in long-term rates
- European equities still more attractive than US stocks