As the UK and US economies gather momentum positive economic data is welcomed with trepidation as investors fear it will quicken the pace of QE tapering and force interest rate hikes sooner rather than later. However the situation in Europe is completely different, bad news, such as today’s poor GDP figures from Germany and France, not only confirm that Europe is slowing down but importantly will put pressure on the ECB to extend their asset purchase program thus pumping further liquidity to markets. And as we know liquidity can be very positive for equity markets; so bad news can be good.
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Markets uneasy as tensions rise in Ukraine
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The Week Ahead - Watch the central banks
The Week Ahead - Watch the central banks