Euroland is gathering momentum

The major economies of the US, Japan, Euroland and the UK are all at interesting stages in their economic cycles, which will be driving yield curves over the coming months. The background is complicated by the performance of the oil price, which remains firm despite attempts by OPEC to drive it down. A major element in the global background is the tightening of interest rates over the past year. The drag to growth from the increase in rates is complemented by the sharp rise in the oil price. Higher oil prices have the effect of raising the aggregate cost curve of the economy, imparting ...