The Week In Hindsight, 16 May 2014
GDP figures released for both France and Germany on Thursday highlighted a growing divergence of growth prospects for the eurozone’s two largest economies. The tale of two cities showed stagnation in the French economy with nil growth (0.0%) for Q1 2014, while German GDP figures released 90 minutes later surpassed expectations.
The official German figure came in at 0.8% for Q1 VS expectations for a print of 0.7%, indicating that some observers may have underestimated the continent’s largest economy.
In addition to output figures, final inflation numbers for the month of April were also released during the week. Both measures, CPI and Core CPI, came in as expected with inflation stagnant and stubbornly below the 2% target.
Overall, while positive for Germany, the week’s releases do little to change the outlook for Europe as a whole. We continue to believe that a further loosening of monetary policy will be forthcoming from the ECB over the weeks and months ahead. This is given the low, and in some cases non existent, price pressures and lagging growth across some areas of the continent.
EU Indices (DAX, Black)
The information provided by Stockatonia, via both the telephone as well as the Stockatonia websites, is prepared as general information and general information only. As a result, the information in question does not constitute a recommendation to either buy and sell or not to buy and sell, any items or products treated as securities or financial instruments under UK laws and regulations.
To the extent that it is necessary, you agree not to act directly upon any information made available via telephone contact with Stockatonia and its representatives, as well as online contact with Stockatonia and its representatives, without first consulting your own financial adviser or investment adviser.
To the extent that it is permitted under the laws of the United Kingdom, Stockatonia and its representatives can accept no liability whatsoever in relation to losses incurred by clients, prospective clients and members of the public where these losses have arisen out of action, or inaction, which has taken place as a result of any form of contact with Stockatonia or its representatives.
This may be contact carried out by internet-driven media, letters and materials which are sent by post as well as information conveyed by Stockatonia and its representatives via the telephone.