Photo: scjody via Flickr
We already mentioned the strong UK GDP report, but that’s not the only good economic news on the other side of The Atlantic (if you’re in the US).There’s good news in Germany, too, where a reading of the general business climate showed a surprise gain. The newspaper FAZ described the mood as “party mode.”
Remember, this follows news yesterday about industrial production and the PMI coming in stronger than expected across the Eurozone.
All this improving economic news plays into the stress tests as well, since one of the scenarios that the banks are stress tested against is the possibility of a severe recession.
But if the economy comes back, this scenario is somewhat taken off the table.