The eurozone has largely been reacting to UK developments this morning, benefitting from the pound’s weakness. Additionally, in a positive sign as Europe slowly reopens, manufacturing PMI just released has seen a slight increase in France and Germany.
Eurozone inflation has dropped further, yesterday’s figures reveal, reaching 0.4% year on year. Spain, Portugal, Greece, Ireland and Denmark all reported deflation, with German slightly bucking the trend at 0.8%.
Concerns persist over the UK and EU being unable to come to an agreement on a trade deal this year, after Michel Barnier’s reply to David Frost was published, showing both sides seemingly unwilling to compromise.
