The preliminary flash data were unrevised leaving a 0.3 percent quarterly rise in GDP that followed a flat reading at the start of the year. At 0.6 percent, annual growth similarly matched its first estimate and so remained 0.5 percentage points down on the first quarter rate.

A more complete regional picture confirmed that quarterly growth masked an unrevised 0.3 percent contraction in Italy and stagnation in Germany. Consequently, the improvement still comes largely courtesy of France (unrevised 0.5 percent) - where the rate would have been negative but for a jump in net exports - and Spain (unrevised 0.4 percent). Elsewhere, Ireland (3.3 percent) and Lithuania (2.8 percent) had a particularly good period but there were declines in a number of countries, including the Netherlands (0.3 percent) which slid into recession alongside Estonia (also minus 0.3 percent).

In sum, while the headline data look moderately respectable, the underlying picture is rather weaker with domestic demand most likely quite soft. Still, today's report puts the Eurozone ECDI at 4 and the ECDI-P at 9 and so shows overall economic activity running a little ahead of market expectations.

No revisions are expected to the preliminary flash data leaving a 0.3 percent quarterly gain and a 0.6 percent yearly growth rate.

Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy. There are two preliminary estimates which are based on only partial data. The first is the preliminary flash, introduced in April 2016 and limited to just quarterly and annual growth statistics for the region as a whole. This is issued close to the end of the month immediately after the reference period. The second flash report, released about two weeks later, expands on the first to include growth figures for most member states but still provides no information on the GDP expenditure components.

GDP is the all-inclusive measure of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Stock market Investors like to see healthy economic growth because robust business activity translates to higher corporate profits. The GDP report contains information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. These data, which follow the international classification system (SNA93), are readily comparable to other industrialized countries. GDP components such as consumer spending, business and residential investment illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.

Each financial market reacts differently to GDP data because of their focus. For example, equity market participants cheer healthy economic growth because it improves the corporate profit outlook while weak growth generally means anemic earnings. Equities generally drop on disappointing growth and climb on good growth prospects.

Bond or fixed income markets are contrarians. They prefer weak growth so that there is less of a chance of higher central bank interest rates and inflation. When GDP growth is poor or negative it indicates anaemic or negative economic activity. Bond prices will rise and interest rates will fall. When growth is positive and good, interest rates will be higher and bond prices lower. Currency traders prefer healthy growth and higher interest rates. Both lead to increased demand for a local currency. However, inflationary pressures put pressure on a currency regardless of growth.