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on Monday that will be closely watched amid debate over whether the European Central Bank may raise interest rates again at its next meeting in September.
The GDP data is expected to show that the bloc’s economy returned to growth in the second quarter, while inflation is expected to moderate only slightly. Inflation in the euro zone has halved since peaking last October but, at 5.5%, still remains well above the ECB's 2% target.to a historic high on Thursday but removed a clear hint at further hikes from its policy statement, meaning another increase at its upcoming September meeting should not be taken for granted.
ECB President Christine Lagarde said what would come next was in the balance, even if the central bank was determined to"break the back" of inflation.PMI data out of China at the start of the week are likely to point to a contraction in manufacturing activity for a fourth straight month in July, underlining the need for stimulus measures to support the post-pandemic recovery in the world’s second largest economy.
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