Cross Asset Investment Strategy

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The Eurozone economy has stagnated over the last three quarters, although growth in the second quarter was marginally positive due to strong idiosyncratic growth in one or two smaller countries. The countries that are more dependent on services, such as France and Spain fared better, compared to Germany and Italy, for instance, which rely more on manufacturing and exports. Nonetheless, soft data and leading indicators suggest the services sector is unlikely to remain resilient. 

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