According to Danske Bank analysts, the latest euro area macro data signals suggest that investors should brace themselves for more negative economic surprises in coming weeks.

“We expect GDP growth in Q2 to fall back to 0.2% q/q, as exports and investments are prone for a correction, while PMIs should be in for another round of declines in Q3. This should support the ECB's narrative that further stimulus is warranted. We do not think the euro area is heading for recession any time soon; however, it may be a good time for investors to take a closer look at the data and ask whether a rude awakening is looming in the coming weeks and months, once real economic data starts to turn the corner.”