The eurozone economic expansion was much stronger than expected at 0.4% in the third quarter, trimming bets on a 50bp rate cut in December and handing a modest boost to the euro.
The upbeat growth data will go a long way in alleviating the ECB's fears about faltering activity and undershooting inflation. There is a flicker here of the rising real wage, higher consumption path that policymakers had been flagging as the source of a rebound.
That said, these are hardly figures to get excited about. Germany may have eked out a touch of growth, but that is from a weaker position in Q2 than previously thought.
The quarterly growth data is backward looking and only captures one month of the poor PMI prints that have spooked the ECB into easing more aggressively.
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