Euro area macro remains favourable – Goldman Sachs

Kevin Daly, Research Analyst at Goldman Sachs, suggests that analysts at GS remain of the view that macro and micro fundamentals remain supportive in the Euro area.

Key Quotes

“Following Friday’s large upside surprises in German, French and Spanish IP – which beat expectations by an average of 1pp – our European economics team’s RETINA GDP tracker rose by +0.12pp, to +0.8%qoq for Q2 GDP. We remain of the view that macro and micro fundamentals remain supportive in the Euro area, underpinned by solid growth momentum, subdued inflation and easier monetary policy relative to the US. As such, we prefer Europe to the US in both credit and equities.”