Eurozone inflation eased back to a rate of just 1.1% in February. As in the US, there is some indication of a modest pick-up in wage growth, and this has in the past been closely associated with the rate of inflation in the service sector.
ECB to extend APP to end of 2018
We had a glimpse of the potential market implications of a more eurosceptic Italian government in recent weeks.
2018 has seen another spring dominated by political manoeuvrings, in particular the return of 'The Italian Question'.
Before the Italian President Sergio Mattarella rejected the proposed eurosceptic finance minister Paolo Savona, many market commentators were saying that a yield of 2.5% for 10-year Italian sovereign bonds is a key level for the European Central Bank...