Europe’s economy stagnated at the end of last year as former growth engine Germany floundered to the end of a second straight year of shrinking output, officials said Thursday. Gross domestic product was flat with a zero increase in the final quarter of 2024 in the 20-nation eurozone,

The European Central Bank is cutting its key interest rate, a step to boost an economy that’s struggling to grow as consumers burned by inflation warily eye price tags and businesses try to chart a course amid political turmoil in leading economies France and Germany.

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.

Economic growth in the eurozone slowed to a halt in the fourth quarter, dragged by contractions in two of its major economies, France and Germany,

Europe's economy stagnated at the end of last year as former growth engine Germany floundered to the end of a second straight year of shrinking output, officials said Thursday.

European Central Bank (ECB) ­president Christine Lagarde did not mince her words about the wider economic conditions even as she gave Europe’s borrowers another rate cut yesterday.

The euro zone unexpectedly stagnated at the end of last year as government collapses in its top two economies bruised confidence among businesses and consumers.Most Read from BloombergManhattan’s Morn

The euro zone economy stagnated last quarter as worried consumers zipped up their purses, adding to fears that a long-predicted recovery could be further delayed, Eurostat data showed on Thursday.

AUD/USD is defending minor bids above 0.6200 in the Asian session on Friday, hanging close to a nearly two-week low amid the latest tariff threat from US President Trump on Chinese imports. Further, increased bets for February RBA rate and China's economic woes remain a drag on the pair. US PCE eyed.

Axel Rudolph at IG observed: "The slowest US growth in three quarters has revived hopes that the Fed may move away from its hawkish hold. Eurozone GDP stalling and the German economy - in a mild recession since 2023 - shrinking more than expected in [the fourth quarter] have also increased the odds for further European Central Bank rate cuts."

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

The European stock markets closed higher in Thursday trading as The Stoxx Europe 600 rose 0.90%, Germany's DAX gained 0.41%, the FTSE 100 in London increased 1.04%, France's CAC 40 was up 0.88%, and the Swiss Market Index closed 0.