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What happened: A stock index Stoxx Europe 600 has reached record levels in the European trading session in response to optimism in financial markets. Demand for stocks was sufficiently impacted by reports of an agreement between the U.S. and China on a trade deal, positive (for the markets) election results in Britain and strong statistical data from China.
What really happened: Despite the positive trend from the outside, the data growth in the eurozone is in doubt. Recently released PMI estimates for December fell short of forecasts.
At the same time, the performance indicators continue to indicate a decline. In addition to that, it is worth saying that the new ECB president Christine Lagarde so far only promises a comprehensive revision of monetary policy, but it is not clear from her comments whether she is committed to a softer approach than her predecessor Mario Draghi.
This means that despite the new records of the Stoxx Europe 600 index, it can seriously lag behind competitors in the coming months, not being able to rely on the foundation of macroeconomics.
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