... possibility of new barriers in the future. The eurozone economy stagnated in Q2 (~+0.1% q/q), and inflation decreased to ~3% (core ~3.5%). The European Central Bank maintained its rate on July 24 and indicated that the tightening cycle may soon conclude. The ECB's softened rhetoric has led to a slight dip in bond yields and a strengthening of the euro. The DAX, CAC40, and FTSE100 indices gained slightly over the week – the easing of tariff risks has offset the impact of high rates and weak external demand....

... amid ongoing uncertainty. European Economic Signals: Trade and inflation data from the EU will provide insights into the region's economic health. Improvement in the trade balance and a deceleration in inflation could reinforce expectations of looser ECB policies, potentially supporting the euro and European stocks. Conversely, weak figures would remind the markets of recessionary risks and could enhance volatility in local markets. Corporate Earnings in Focus: After the U.S. market closes, Palo Alto ...

... European stocks is likely, especially in cyclical sectors sensitive to the business cycle. In this scenario, the euro would be under pressure, as weak statistics would heighten expectations for stimulus measures from the German government or a more lenient ECB policy. Surprise Possibility . Substantial growth in Germany's GDP is considered unlikely by experts due to unfavorable conditions at the beginning of the year. However, if the data exceeds forecasts and shows a confident economic upturn, the markets ...

... indicating a decline in output, while the services sector slowed amid rising interest rates and weak consumer spending. If the August figures indicate further deterioration in business sentiment, this may heighten expectations for a dovish shift from the ECB in the future. UK PMIs are also crucial: the British economy faces high inflation and stagnation risks, so a slowdown in either the services or manufacturing sectors could impact the pound and the Bank of England's policies. Overall, the aggregated ...

... inflation remains elevated (around 3.5–4%), continuing to exert pressure on household spending. The European Central Bank paused at its meeting on July 24, keeping the refinancing rate at 2.1% and signaling that the rate hike cycle is nearing its end. The ECB’s softened rhetoric, combined with signs of cooling in the economy, led to a slight decrease in bond yields in Europe. The euro strengthened against the dollar over the past few days, taking advantage of weaker US data and the Fed's pause: the EUR/USD ...