Reuters reports that S&P Global lifted both its euro area economic growth and inflation forecasts for this year.

The ratings agency said that Europe's economic recovery since lockdown restrictions were lifted in March-April had been "surprisingly strong," leading it to raise its growth forecasts to 5.1% for the current year, from 4.4% previously.

S&P Global also revised up its inflation forecast for this year to 2.2% from 1.8%.

"However, we continue to see inflation decelerating below the ECB's target next year on the back of subdued wage development and falling growth momentum," S&P said.