European stocks came under pressure on Tuesday, as an improvement in economic activity spurred speculation that the European Central Bank might have more room to raise interest rates to tackle inflation.
Economists at Deutsche Bank no longer expect a euro zone recession in 2023 and also lowered their inflation outlook, but don't see the ECB taking their foot off the hawkish pedal just yet. German business morale brightened in January as Europe's largest economy started the new year with easing inflation and an improved outlook, the Ifo institute's survey
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