Recent economic trends in Eurozone

Economic data reported from the Eurozone indicated that the European economy (VGK) has expanded in the last 17 consecutive quarters. The annual growth rate for the Eurozone has been reported at 2.1%, which is the highest rate of growth in the last six years.

This economic expansion is expected to continue at a healthy pace as recent risk events, including Brexit and France’s elections, fizzled out in favor of the Eurozone’s (IEV) stability. The unemployment rate has also seen a decline, with the June unemployment rate touching its lowest point since 2009. Inflation has been trending higher, with the July inflation rate improving to 1.3%.

All this improvement should be encouraging for the European Central Bank (or ECB), which could be inching toward policy normalization in the near term.

Is Strong Economic Expansion in the Eurozone Driving the ECB?

ECB’s hawkish tone seems justified

The current quantitative easing (or QE) program by the ECB is expected to continue without any changes until the end of this year. Despite the improvement in the European economy (FEZ), the ECB is only expected to reduce the pace of the bond buying program.

The ECB’s view that inflation could pick up in the near term is unlikely to influence any changes to the QE program. However, it could influence the tone of the European Central Bank’s communications.

Series overview

In this series, we’ll analyze the trends in the Eurozone, the ECB, and the impact of a stronger euro (FXE) on the European economy (EZU).

Latest articles

This morning the US stock market opened on a strong bullish note after the Federal Reserve hinted at a cut in the interest rates yesterday. Also, renewed US-China trade optimism helped the S&P 500 Index reach new heights today. The world’s two largest economies have started trade negotiations once again ahead of US President Donald Trump and Chinese President Xi Jinping’s meeting next week.

Extreme value retailer Grocery Outlet Holding (GO) announced on June 19 that it had priced its IPO at $22 per share, well above its target price range of $18–$19. Initially, the company had planned to sell its shares in the range of $15–$17.

20 Jun

NIO Stock Is Soaring, Tesla Continues to Fall

WRITTEN BY Jitendra Parashar

On June 20, NIO (NIO) is trading on a bullish note for the fourth consecutive session. At 11:00 AM ET, NIO stock has risen 8.1% at $2.96. Earlier on June 20, the stock rose above the psychological level of $3.00.

20 Jun

Will Refiners’ Earnings Plunge in 2019?

WRITTEN BY Maitali Ramkumar

Wall Street analysts expect refining firms' earnings to fall in 2019. Delek US Holdings (DK) and Valero Energy’s (VLO) earnings are estimated to fall less than 10% in 2019. However, the EPS of Marathon Petroleum (MPC), HollyFrontier (HFC), and Phillips 66 (PSX) are expected to fall 20%–40% this year.

After remaining tepid for the first four months of the year, gold prices have taken off in a big way. The initial impetus was provided by a tweet made by President Donald Trump on May 5, which revived trade tensions in a big way.

20 Jun

How Are Charter’s Revenues Trending in 2019?

WRITTEN BY Ambrish Shah

In the first quarter, Charter Communications (CHTR) reported total revenues of $11.2 billion—a rise of 5.2% year-over-year and $7 million ahead of the consensus estimate.