Euro-area GDP grew 0.4% in the second quarter, twice the 0.2% consensus estimate and a rebound from no growth in the first quarter. A day later, the July inflation flash estimate rose to 2.9% from 2.8%, driven mainly by energy and services. The combination suggested that the economy was absorbing the energy shock better than feared, but with inflation still above target it gave the ECB little reason to relax policy. The euro’s reaction to the GDP surprise was muted, rising about 0.1% against the dollar.