What's going on?

Data out on Tuesday showed that eurozone business activity sped forward this month.

What does this mean?

Turns out the beleaguered eurozone � which borders war-torn Ukraine and was recently smacked by an energy crisis � is actually doing pretty well for itself. At any rate, that�s what was found by a monthly survey asking purchasing managers how business has been. By their account, business activity has grown at the greatest rate in nine months, whizzing past economists� expectations to post the second-straight month of growth. That bumper performance was solely down to the services sector, which clocked up its best performance since June and offset a slight slowdown in manufacturing as factory activity dropped off.

Why should I care?

For markets: Growing, growing, gone.
This data has got economists thinking the economy might grow this quarter, and it�s no surprise they�re looking on the bright side: natural gas shortages don�t look likely right now, inflation�s currently on the ebb, and consumer confidence is at its highest in a year. But that good news could have some not-so-good effects, keeping the flames of inflation hotter for longer and prompting more hikes from the European Central Bank. That chimes with what Goldman�s thinking: the firm revised its predictions earlier this week, betting that interest rates will peak at around 3.5% in June � not 3.25%.

Zooming out: Pricey permits.
The improving economic outlook meant that the price of European pollution permits rose to over �100 ($107) for the first time ever on Tuesday. That means that the carbon credits � one of the mainstays of the region�s net zero strategy � have risen fivefold in three years. And that�s not really a shocker: tumbling gas prices have spurred industry on, and the specter of more stringent climate regulations has got businesses stockpiling permits, further buoying up prices.