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

The eurozone economy stagnated in the fourth quarter as political instability weighed heavily on the region’s two biggest countries, offsetting better performance elsewhere.

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.