Economy
Spain's inflation surpasses forecasts in December as fuel costs surge
Spain's inflation climbed to 2.8% in December, surpassing the 2.6% forecast, propelled by rising fuel prices and increased leisure costs. Core inflation reached 2.6%, signalling persistent pressures, particularly in services.
Markets
Challenges facing European markets set to persist through 2025
Europe will continue facing challenges in 2025 amid domestic political uncertainties and global events, such as Trump's tariffs threats and China's slowdown. These factors are likely to continue weighing on market performance, particularly in the car manufacturing and banking sectors.
ADVERTISEMENT
Business
Can Germany's improving financial sentiment beat business pessimism?
Financial experts are more optimistic about Germany’s economy as the ZEW index rebounded more than expected in December, its highest in four months, driven by ECB rate cut prospects and snap elections. Yet, the ifo survey shows businesses remain far more pessimistic about 2025.
Markets
European markets may face pressure following weak Chinese data
China reported disappointing retail sales data for November, underscoring ongoing challenges with sluggish consumer demands. The data will likely weigh on the European stock markets, particularly in consumer, energy, and mining sectors.
Economy
Lagarde: ECB worried on growth but confident inflation is on track
The ECB has cut rates by 0.25% to 3%, citing progress toward its 2% inflation target and warning of downside growth risks. Lagarde noted signs of slowing momentum and weak investment. A larger cut was debated, but consensus formed around 25 basis points. Policy remains data-driven.
