Economic growth in the Eurozone halts in the fourth quarter as both Germany and France experience contraction

The last quarter of 2024 saw the Eurozone’s GDP remain static due to contractions in Germany (-0.2%) and France (-0.1%). This situation has heightened the anticipation of further interest rate reductions by the European Central Bank (ECB). During this period, the euro maintained a steady value of $1.04, and bond yields descended. However, the policy gap between ECB and the Federal Reserve (Fed) is expanding, with Fed’s chief Jerome Powell indicating no urgency in slashing rates. This write-up will be insightful for those eyeing investment opportunities or harbouring a general interest in the financial market, even though it’s not specifically targeted at them.

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