Eurozone divergences are back in play ...Qatar

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Eurozone divergences are back in play
Monetary-policy tightening is coming to Europe. Following in the footsteps of the US Federal Reserve and others, the European Central Bank (ECB) has announced that it will discontinue its asset-purchase programme and raise interest rates this month, in a bid to rein in inflation. But, unless the authorities address the differential effect this has on member states’ financial conditions, the eurozone will experience both a recession and a financial crisis. Anticipating this monetary-policy shift, the eurozone safe yield curve, as measured by overnight index swaps, has been moving up since December, suggesting that financial conditions are becoming significantly tighter. Meanwhile, sovereign

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