European Economics

European Economics Weekly

17 August, 2018

Contagion from Italy likely to remain limited

The sell-off in Italian bonds continued this week, and although we think that Italian yields have further to rise, we suspect that contagion will remain limited. Meanwhile, data released this week for the euro-zone showed that the economy did better in the first half of the year than previously thought, and that the direct impact of US trade tariffs has so far been negligible.

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