Eurozone investors have been the biggest overseas net buyers of US debt securities in the past half-decade, a trend that could reverse as the European Central Bank continues to tighten monetary policy, according to new research.
Eurozone economic growth, already moderating in part from a stronger currency, will take a further hit from the ongoing trade dispute between the United States and China, according to a majority of economists polled by Reuters.
Eurozone banks may get a reprieve until 2021 to fully implement European Central Bank guidelines on treating new soured loans, an ECB document showed, a retreat from an earlier proposal for a more aggressive treatment of bad debt.
Eurozone consumers’ confidence is wavering.
While the European Commission’s confidence indicator is still close to its highest level in seventeen years, a flash estimate pointed to a sharper fall this month than any analyst polled by Thomson Reuters predicted.
France’s finance minister has hit out at German-backed plans to impose debt writedowns on investors in bailed out countries, warning that the issue was a ‘red line’ for Paris in talks on eurozone reform.
Growth in the eurozone shot up in 2017, putting Europe at the center of a global recovery and on par with levels of expansion not seen since before the financial crisis, according to figures released on Tuesday.
Economic confidence across the eurozone has hit its strongest level in more than 17 years, according to official figures that suggest both consumers and businesses are benefiting from the region’s healthy recent performance.
Inflation in the eurozone slipped further away from the European Central Bank’s target in December, highlighting the challenge facing the bank as it looks to maintain price rises while winding down its quantitative easing program this year.
Growth in lending to eurozone businesses and households picked up in November, official data showed, in an encouraging sign for European Central Bank chiefs as they begin withdrawing support for the economy.