The evolution of financial conditions in the euro area and the United States: a Macro-Finance FCI perspective

Tilman Bletzinger, Giulia Martorana and Jakub Mistak

Economic Bulletin Boxes, 2026, vol. 6

Abstract: This box extends the Macro-Finance Financial Conditions Index (FCI) framework, originally developed for the euro area, to the United States. The analysis finds close linkages between US and euro area financial conditions, with risk assets playing a dominant role in the transmission of US shocks to euro area financial markets. In particular, changes in market expectations for the stance of US monetary policy affect euro area financial conditions through global risk-asset repricing, even when the ECB’s own policy stance remains unchanged. The findings highlight the importance of spillovers from the United States in shaping euro area financial conditions. JEL Classification: E44, E52, F42, G15

Keywords: FCI; financial conditions; monetary policy spillovers (search for similar items in EconPapers)
Date: 2026-09
Note: 2652553
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbbox:2026:0006:5

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