ECB to cut rates as recession risks rise but markets dance to US tune
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ECB to cut rates as recession risks rise but markets dance to US tune

Steven Bell
Steven Bell
Chief Economist, EMEA

Key Takeaways

  • Despite data and news supporting rate cuts in Europe, market sentiment continues to be driven by a focus on the US.

  • Recession fears raised by the Sahm rule have evaporated and expectations of deep rate cuts in the US have receded.

  • In Europe, pessimism about economic prospects is all pervasive. However, we think this is overdone and expect European growth to steadily improve over the next year.

  • UK attention is focused on the upcoming budget at the end of the month

Transcript
7 October 2024

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