- Analytics
- News and Tools
- Market News
- French election spooks markets – Danske Bank
French election spooks markets – Danske Bank
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 cut but 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. Rassemblement National won the first round of the parliamentary elections with 33% of the votes. This means the most likely scenario is a ‘hung parliament’ and thus limited risk of France going down an increasingly unsustainable fiscal policy path.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
