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.
There were several credit rating changes in February that were significant for emerging markets (EM).
Europe's economic recovery continues to broaden and deepen. The ongoing expansion is supported by a synchronised global growth backdrop with few medium-term concerns coming from the international trade impulse.
While the latest macro data confirm the positive orientation of European economic growth, risks in the eurozone remain plentiful.