Today’s disappointing numbers point to a significant contraction in the Euro area in Q2 and shows that the Greek crisis is spreading to the German and French economies. Risk of rate cuts from the ECB during summer.
The decline in manufacturing confidence supports expectations of further stimulus measures from the Chinese authorities. After a bleak Q2 we thus expect growth to strengthen towards the end of the year.
The storm did come after the calm, as our April issue of the Monocle suggested. It may get worse before it gets better in the coming weeks, but not for long.
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