Global X ETFs “Stagflation is an increasing risk for Europe, since its economic rebound from the pandemic has started later than in the U.S while facing a severe energy crisis.
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Morgane Delledonne, Director of Research, Europe Global X ETFs
Overall, European sovereign yield curves are flattening which suggests that markets are increasingly pricing this scenario.
“On Thursday, the European Central Bank is likely to focus more on inflation amid soaring energy prices than on the potential negative impacts from the war on the economic growth across the region. The main reason is that price stability is ECB’s only mandate, and inflation pressures are already here and persistent. It is far too early to assess the economic impacts of the sanctions and the war on the European economy.”
Source : ETFWorld.co.uk
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