Eurozone GDP stagnated in Q4 2024 as Germany (-0.2%) and France (-0.1%) contracted, reinforcing expectations of more ECB rate cuts. The euro held at $1.04, while bond yields fell. The ECB-Fed policy gap widens as Powell signals "no rush" for rate cuts.

Europe’s economy stagnated late last year as its former growth engine, Germany, finished a second straight year of shrinking output.

Eurozone growth slowed to a halt in the fourth quarter last year, dragged by contractions in major powers Germany and France which were held back by economic headwinds and political