French election spooks markets – Danske Bank

  • 📰 FXStreetNews
  • ⏱ Reading Time:
  • 23 sec. here
  • 6 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 72%

Europe News

France,Politics,Markets

The economic recovery in the euro area might not be as solid as previously thought.

At least that is the impression the June PMI survey gives, and the less upbeat picture was confirmed by German IFO data, Danske Bank’s macro analysts note. Eurozone recovery may be less solid than expected “The service sector has lost some momentum and the manufacturing recession reaccelerated after we had seen promising signs of a stabilisation here in recent months. Price pressures moderated a bit in June in the euro area, but by and large, service inflation remains too high.

” “The ECB delivered the widely anticipated first 25bp rate cutbut kept its forward-looking guidance vague at its June meeting. We see the move as a roll-back of the September 2023 insurance hike and as we still see a sufficiently growth momentum and sticky inflation, we do not expect the next rate cut from the ECB until December.” “The possibility of a new French parliament ready to run higher deficits has spooked markets through June.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 14. in ERROR

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

European markets higher; Swiss National Bank cuts rates ahead of Bank of England decisionEuropean stocks were higher on Thursday, with U.K. investors looking ahead to the Bank of England’s policy rate decision.
Source: NBCDFW - 🏆 288. / 63 Read more »