Charting the Global Economy: Prospects dim for European economy

This post was originally published on The Economic Times

Business activity in the euro area unexpectedly shrank this month, fueling concerns about the prospects for Europe’s economy and suggesting the European Central Bank will need to be more aggressive with interest-rate cuts.

The euro fell to its lowest level since 2022 against the dollar after the purchasing managers gauge of service providers and manufacturers weakened. Political crises in Germany and France, as well as the threat of tariffs from a Donald Trump presidency in the US, also weighed on the currency.

Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics:
Europe

BloombergEuro-area business activity unexpectedly shrank in November, a sign of the damage being wrought by political chaos and heightened discord over trade. The euro fell to its weakest levels since 2022 against the dollar as traders priced in more interest-rate cuts from the European Central Bank. The chance of a 50 basis-point reduction in December rose to 50%, from about 15% at Thursday’s close.

Bloomberg<a

— Read the rest of this post, which was originally published on The Economic Times.

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