BRUSSELS, May 11 (Reuters) : US and euro zone data will help investors take the pulse of the global economy this week, but the crisis in Ukraine threatens to spoil any improvement.
Steady prices and good retail sales are expected to show the US economy in a more flattering light this week, in encouraging news for the Federal Reserve as it pares back the stimulus that has buoyed financial markets for the last few years.
In the euro zone, where many investors are wondering if the European Central Bank will follow Washington's example by turning on its money printing presses, a continued but modest improvement in output is expected.
But a referendum on independence in eastern Ukraine called by pro-Russian separatists has underscored the threat of civil war in the country, a conflict that could rock confidence and hit trade between Russia and the rest of Europe.
"An escalation of the Ukraine crisis might be the trigger which leads to a correction and can bring uncertainty back to the rest of the world," said Carsten Brzeski, an economist with ING. "The return of uncertainty can really cost growth."
Ukraine casts shadow as investors take pulse of fragile economy
FE Team | Published: May 12, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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