The US tax cuts are expected to support the growth also in the EU. According to the European Central Bank´s policy meeting in December, the impact of the cuts have not been calculated in the estimates earlier.
The Central Bank has estimated that the GDP will grow 2,3 % this year and 1,9 & next year. For the year 2020 the growh estimate is 1,7%. For example the IMF has estimated that the growth would be 1,7 % in 2019.
This positive sign from the ECB memo was fuelling the rally in the currency and bond markets yesterday. For example the German 2 year bond yield increased by 4 basis points to minus 0,57 percent. And euro was trading 1,20 against US dollar. Also the Brent Oil increased to three year high and was over 70 dollars a barrel due to production cuts by OPEC. Stock markets were mixed.