The coronavirus spread in Europe after China, before moving to the US. It wrecked havoc in Italy and Spain but it seems like it is going away from Europe now, as new cases fall every day and the continent is reopening again. Today’s manufacturing data for June took this sector one step ahead, so ECB member Panetta is feeling optimistic.

Comments by ECB Executive Board Member, Fabio Panetta

• Euro area has so far weathered the virus shock as well as could be expected
• European response to the coronavirus has been remarkable
• We are now in a better position to watch how key developments play out
• ECB will respond to any significant tightening in financial conditions
• But any positive indications for now need to be taken with a pinch of salt