Euro-area GDP growth for the second quarter is shaping up to be a disappointment. The aggregate figure may come in 0.1 percentage point below the 0.4 percent quarter over quarter forecast
The main culprit has been weak investment spending, which has plagued the euro-area economy throughout the recovery. Fortunately, the external sector picked up some of the slack in Germany . In addition, the consumer in France failed to come to the economy’s rescue.
However, the European currency is only -0,10 down today amid positive news from Greece.
Greek parliament agreed the third bailout package, but now it is the Eurogroup that will take the final decision on the rescue programme for Greece. Greece's third bailout is back in the hands of euro zone finance ministers, who are meeting later today to discuss whether to go ahead with the deal – or delay it.
European stocks were higher on Friday, as concerns due to the devaluation of the yuan continued to ease and as investors awaited the release of euro zone inflation and second quarter growth data due later in the trading session.
The market focuses now on the data from the EMU (inflation and CPI) and on the data from the United States, with industrial production in the spotlight.