Gross domestic product figures released by the European Statistics Office for the final quarter of 2015 showed modest improvement over the prior reading. Fourth quarter expansion printed at 0.30%, matching both expectations and preliminary and revised estimates of 0.30% obtained in February. On an annualized basis, the data managed to surprise market participants after surpassing the previous value of 1.50%, climbing to 1.60% with both household and government spending leading the way. In spite of rising GDP values, the President of the European Central Bank is anticipated announce more stimulus on Thursday’s monetary policy meeting as the Euro Area once again encounters deflationary pressures. Headwinds arising from turmoil in financial markets amid a slowdown in the Chinese economy will continue to weigh on the outlook. The Euro continued to rally versus major currencies, with EURUSD reaching a price of 1.1030 following the report.
EU: Modest Q4 Growth Reported Ahead of Rate Decision
Daily Analysis - 09/03/2016