Euro zone growth beats forecasts as energy prices retreat

Last week, energy prices fell from recent highs and stock markets recovered on both sides of the Atlantic, while euro zone economic growth exceeded analyst expectations. The euro zone economy grew 0.4% in the second quarter, double the forecast, with annual growth accelerating to 1%. Brent crude oil fell 6.9% to $90.12 per barrel, and European TTF natural gas dropped 7.1% to €59.07 per megawatt-hour, driven by increased tanker traffic through the Strait of Hormuz and cooler weather. Despite the decline, oil remains about 25% more expensive than a month ago, and gas prices are roughly a third higher. Euro zone inflation rose to 2.9% in July, and three US Federal Reserve members voted for a rate increase, with the base rate held at 3.5–3.75%.