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Next week in the Eurozone, the European Central Bank will release the minutes from its latest meeting and on Friday, GDP data is due. According to analysts from Danske Bank, markets could be in for additional negative surprises when it comes to hard economic.  

Key Quotes:  

“In the euro area, there are two interesting releases on the agenda. The ECB minutes from the June meeting will be out on Thursday. At the press conference, Draghi stressed that the governing council (GC) discussed several options at the meeting including a rate cut and a restart of QE. Draghi in his Sintra speech sent a strong signal to markets that more stimulus is coming. Hence, markets will look out for clues in the minutes on how ready the GC stands in announcing immediate steps already at the 25 July meeting. We still lean towards an announcement of an easing package coming in September.”

“On Friday, we get a further piece of the puzzle on where euro area GDP growth will arrive in Q2 with the industrial production data for May. The April figures pointed to a weak start for the industrial sector into Q2 and business surveys such as the PMI and Ifo point to further setbacks ahead.”

“We think markets could be in for additional negative surprises when it comes to hard economic data in the coming months.”