In a research note JP Morgan says the ECB’s QE program was more aggressive than expected, but also for the eurozone that:
- We are encouraged that a number of headwinds to growth are fading
- The drop in commodity prices provides a new source of lift
- Drags from tight credit supply and fiscal adjustment have not faded completely but are easing incrementally
- The exchange rate is swinging from a drag on growth to a boost
- And the sentiment shock from conflict with Russia also appears to be dissipating
- Meanwhile, the recent acceleration in retail sales growth suggests the support from lower oil prices is feeding through
Ahhh, what the heck:
