Reported about 1 year ago
Provided by Cathay Futures' Certificate Department, compiled by Huang Yanhong on June 25, 2024, at 4:10 pm, the Eurozone economy has shown a rebound from its low point this year, with a first-quarter GDP growth rate of 0.4%, up from 0.2% in the previous quarter. However, recent economic data indicates a slower-than-expected recovery in the Eurozone, coupled with the upcoming French parliamentary elections this Sunday, which may lead to a prolonged period of government division for up to three years, creating uncertainty. Overall, the Euro has been depreciating since June, and despite a bounce back after hitting a two-month low, it faces significant resistance near the monthly line due to weak fundamentals. Recent economic data show a decline in the Eurozone services PMI from 53.2 to 52.6, and a drop in the manufacturing PMI from 47.3 to 45.6, both below market expectations. Additionally, the June IFO Business Climate Index fell to 88.6, below expectations, indicating a slower-than-expected recovery. The political uncertainty in France, with President Macron's centrist alliance faring poorly in European Parliament elections and the prospect of an extreme right-wing victory casting further pressure on the Euro, suggests a heightened level of uncertainty for the currency amidst potential governance challenges in France. More Business Times reports: Hsu Hsiu-lan: Clear Energy Policy Can Fight for Industry's Needed Electricity; AR HUD Makes Inroads into Electric Vehicles with Third-Generation Semiconductors; Golden Lineup Takes Shape
Source: YAHOO