Eurozone GDP stagnated in Q4 2024 as Germany (-0.2%) and France (-0.1%) contracted, reinforcing expectations of more ECB rate cuts. The euro held at $1.04, while bond yields fell. The ECB-Fed policy gap widens as Powell signals "no rush" for rate cuts.

Eurozone growth slowed to a halt in the fourth quarter last year, dragged by contractions in major powers Germany and France which were held back by economic headwinds and political instability. At one end of the eurozone spectrum Spain saw its economy expand by 3.

Europe’s economy has stagnated at the end of last year as former growth engine Germany floundered to the end of a second straight year of shrinking output