The U.S. and euro zone economies remain a world apart and growth data due in the coming days will only highlight the widening gap, suggesting that monetary policy will continue to move in opposing directions on the two sides of the Atlantic.
European Central Bank will raise rates in the second half of next year, according to a Reuters poll of economists, who were confident that will be before the next economic downturn.
uro zone’s surplus for goods traded with the rest of the world dropped in May as exports fell and imports increased, one month before United States’ tariffs on European steel and aluminum kicked in, official data showed.
Euro zone finance ministers are expected to give their green light on Thursday to Bulgaria’s bid to join the bloc’s banking union, a step toward the Balkan state’s adoption of the euro, EU officials said.
Euro zone interest rates will remain at their current level for as long as needed to raise inflation and the European Central Bank’s guidance should be seen as “open-ended”, ECB policymakers concluded in June according to minutes of their meeting published on Thursday.
Production at factories in the 19 countries sharing the euro currency increased by more than expected in May, data from European statistics office Eurostat showed on Thursday.
European Commission cut its forecasts for the euro zone’s economic growth this year, saying the main causes for the revision were trade tensions with the United States and rising oil prices which are pushing the bloc’s inflation higher.
“Bond yields should edge higher this week because of supply pressures and as trade war concerns fade slightly, fostering more risk appetite,” said Chatwell.
European Central Bank President Mario Draghi renewed his call for a common bank deposit insurance scheme for the euro area on Monday, arguing that sharing a risk helps reduce it.
Two euro zone central bankers poured cold water on Thursday on ambitions to give the European Union more powers to spend common cash when the economy sours.