Eurozone: Increasing risks – Danske Bank

Danske Bank analyst’s points out that with the signs of improvement European sentiment indicators, confidence has taken a hit from the renewed escalat  |  12/06/2019 10:54

Danske Bank analyst’s points out that with the signs of improvement European sentiment indicators, confidence has taken a hit from the renewed escalation of the US-China trade war and potential US-Mexico tariffs.

Key Quotes

“With external demand remaining a headwind, the longevity of the expansion will increasingly depend on developments in domestic demand. In that light it is reassuring that private consumption in Germany jumped by the most in eight years in Q1 and that May's service PMI remained in expansionary territory at 52.9.”

“Another risk relates to the labour market, where manufacturers have reportedly started to reduce staffing in light of weaker sales prospects and rising geopolitical uncertainty. All that leads us to conclude that the euro area will not be able to maintain its current growth pace of 0.4% q/q in the coming quarters, though we remain some way off recessionary territory.”

“As fears about a cyclical downturn in the economy have intensified, market-based inflation expectations have continued to slide.”

“Looking ahead, we continue to find reasons to expect core inflation to trend gradually upwards towards year-end, albeit we acknowledge downside risks to our inflation forecast.”

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com