This week saw more evidence that the euro-zone economy has lost a lot of momentum. Meanwhile, the UK parliament rejected the EU Withdrawal Agreement, once again raising the spectre of a no deal Brexit. And in Greece, Prime Minister Alexis Tsipras narrowly won a vote of no confidence to avert a snap election. In the coming week, all eyes will be on the ECB meeting on Thursday: we expect President Draghi to more fully acknowledge that the downside risks to the ECB’s forecasts have increased. And also on Thursday, we expect the flash PMIs to be broadly stable, helped by a rebound in France.
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