The Euro Area consumer confidence index improved for the fourth month in a row after energy prices eased. Russia's GDP contracted far less, avoiding dire predictions made at the onset of the Ukraine invasion.
European markets extended recent gains to close at fresh one-year highs after positive earnings supported market sentiment. Spain's inflation accelerated in January. Spain's trade deficit expanded and Italy swung to a deficit in 2022 after energy prices soared.
European markets extended one-year highs and the UK inflation edged lower in January. The Euro Area trade balance swung to deficit after imports rose faster than exports.
European benchmark indexes closed at one-year highs after recession worries eased and corporations reported mixed quarterly results. The Euro Area economic growth was reaffirmed and France's jobless rate dropped to a 14-year low.
Benchmark indexes turned lower and bond yields spiked after central bankers stepped up campaign in support of higher interest rates. The UK economy expanded at a slower pace last year and is expected to decelerate further in the current year.
Benchmark index in Germany closed at the level seen in last February after the inflation index rose at a slower pace in January. Credit Suisse forecasted a substantial loss in 2023 after reporting the worst loss in 14 years.
French employment growth in the fourth quarter paused after seven quarters of growth in a row. The pace of growth in Italian retail sales slowed in December and extended the increase to the 19th month in a row.
French trade deficit widened in 2022 after energy imports soared three-fold, but exports jumped 18% after automobiles and aviation exports approached pre-pandemic levels.
European markets accelerated gains after the ECB and the BoE lifted rates and held out for more increases in March but dovish comments from the Fed Chairman contributed to positive sentiment. The euro rose to a 16-month high and the pound advanced to a six-month high.
European markets brace for higher rates from the Bank of England and the European Central Bank as policymakers focus on cooling inflation with the help of higher and restrictive interest rates.
The Euro Area avoided recession in the final quarter but economies in the currency block reported healthy economic growth in 2022 with Ireland leading the region. The IMF estimated the UK to face a mild contraction in 2023.
