The Eurozone GDP report got here out some time in the past, displaying one other contraction in This autumn, which is able to most likely flip righ
The Eurozone GDP report got here out some time in the past, displaying one other contraction in This autumn, which is able to most likely flip right into a recession, since Q1 of 2021 is predicted to be detrimental as properly. The ZEW financial sentiment turned greater however it’s not matching the economic system proper now, so we’ll see how these two indicators diverge additional within the coming months.
Eurozone This autumn GDP Second Estimate
- This autumn GDP second estimate -0.6% vs -0.7% prelim
- 2021 GDP YoY -5.0% vs -5.1% prelim
The studying reveals that the financial contraction was lower than initially estimated. That’s some excellent news, however this simply reaffirms that the Euro space economic system nonetheless stays on observe for a attainable double-dip recession.
Germany February ZEW Survey
- February ZEW survey present state of affairs -67.2 vs -66.5 anticipated
- January ZEW survey present state of affairs was -66.4
- Expectations 71.2 vs 59.5 anticipated
- January expectations have been 61.8
- Eurozone expectations 69.6
- Prior Eurozone expectations have been 58.3
Investor sentiment reveals that present situations stay moderately tepid for essentially the most half, however there may be loads of optimism surrounding the outlook because the vaccine rollout begins to take form throughout the Eurozone.
The leap within the expectations is the very best since September final yr and reaffirms that the market stays extra forward-looking when viewing the German and Euro space economies at this cut-off date.
That mentioned, this places strain on issues progressing easily within the coming weeks/months, so as to preserve the optimism flowing; in any other case, dialing again on that might weigh on the Euro sentiment transferring ahead.