FINWIRES · TerminalLIVE
FINWIRES

Eurozone Construction Slump Persists in August Amid Worsening Demand

By
Eurozone Construction Slump Persists in August Amid Worsening Demand

Construction activity in the euro area fell at a quicker pace in August amid a sharp drop in new orders as demand conditions worsened, according to survey data from S&P Global published Friday.

The seasonally adjusted S&P Global Eurozone Construction PMI Total Activity Index decreased to 43 from 44.3 in July, largely reflecting lower new order intakes, which saw the fastest rate of decline since April.

France recorded its steepest fall in construction output since May 2020, while companies in Italy saw the fastest decline in activity in four years. In contrast, businesses in Germany saw the weakest rate of decrease thus far in 2026.

Among the three monitored segments, the contraction was most pronounced in housing, while commercial companies also experienced a sharp fall in construction activity in August. Civil engineering also logged lower activity, although the reduction was at a softer pace.

Meanwhile, builders across the eurozone cut staffing levels in August following a drop in new business, with French and German companies reducing their headcount. Bucking the trend was Italy, which increased its construction employment for the second straight month.

Purchasing activity was also down during the month, with construction companies in France and Germany reporting a softer decline in purchasing, while Italian builders saw the steepest reduction since January 2023.

"August data revealed a sharper downturn in construction activity, largely in response to a steeper deterioration in demand conditions," S&P Global Market Intelligence economist Usamah Bhatti said. "Weakness across the sector weighed on the outlook for activity, with firms signalling pessimism regarding the year ahead. According to panel members, headwinds to activity stemmed from inflationary concerns and the war in the Middle East. Companies will take heart from the fact that overall cost inflation trended downwards again to reach a six-month low, however."

Related Articles

Tencent Music Prices $1 Billion Bond Sale as Borrowings Jump to 13 Billion Yuan From Zero
US Markets

Tencent Music Prices $1 Billion Bond Sale as Borrowings Jump to 13 Billion Yuan From Zero

Tencent Music Entertainment (HKG:1698) priced a $1 billion US dollar-denominated two-tranche senior unsecured notes offering on Thursday, according to filings with the Hong Kong bourse and the US Securities and Exchange Commission.The tranches include a $500 million offering of 5.050% notes due in 2031 and $500 million of 5.650% notes due in 2036.The company expects net proceeds of about $991.9 million from the deal after deducting underwriting costs and offering expenses.The Tencent Holdings (HKG:0700) subsidiary, dubbed China's largest online music and audio entertainment platform, plans to use the proceeds for general corporate purposes, including refinancing its offshore debts and funding share repurchases, according to its bond sale prospectus.The plan comes as Tencent Music booked 13.1 billion yuan in borrowings as of the end of June, versus zero at the end of 2025. Total debt stood at 16.5 billion yuan as of June-end, according to its bond prospectus.The company said its bank borrowings grew following its purchase of Chinese online audio platform Ximalaya. That deal was completed in May.J.P. Morgan Securities, Goldman Sachs (Asia) and HSBC serve as joint bookrunners of the bond sale, with UBS, Bank of China and MUFG Securities Asia serving as joint lead managers.S&P Global assigned an A long-term issue rating to the bonds, citing the company's net cash position. Its capital structure comprised 3.4 billion yuan of senior unsecured debt at the parent level and 13.1 billion yuan of bank borrowings at the level of its subsidiaries as of the end of June, S&P said.Moody's assigned an A2 senior unsecured rating to the bonds, saying the offering "will further strengthen Tencent Music's already robust liquidity, enhance its financial flexibility, and support future growth initiatives and investment requirements."

HKG:0700HKG:1698
Update: Dow Marks Best Day in More Than 4 Weeks as Rate Hike Bets Ease
US Markets

Update: Dow Marks Best Day in More Than 4 Weeks as Rate Hike Bets Ease

(Updates with market moves at the end of the day, and other changes, if any.)The Dow Jones Industrial Average and the S&P 500 rose the most in more than four weeks on Thursday as traders tempered expectations for a September interest rate hike.The Dow advanced 1.2% to close at 53,686.11, while the S&P 500 climbed 1.1% to 7,747.71 -- both marking their biggest single-day percentage gains since Aug. 4. The Nasdaq Composite rose 1.4% to 26,584.06. Most sectors ended in the green, led by consumer discretionary, while energy saw the biggest drop.Fed Governor Christopher Waller said Thursday he would support keeping interest rates steady if further signs of disinflation emerge, though he seemed willing to tighten monetary policy if price pressures intensify.Markets are now almost evenly split between a tighter policy later this month and another Fed pause, according to the CME FedWatch tool. The probability of a 25-basis-point rate hike was 63% on Wednesday."The relatively quick and notable reaction in the market to the latest Fed commentary suggests investors were already skeptical of the Fed's intentions to move forward with firmer policy as early as later this month," Stifel Chief Economist Lindsey Piegza said in a note e-mailed to.Treasury yields were lower, with the two-year yield down 4.6 basis points at 4.34% and the 10-yield yield falling 2.2 basis points to 4.77%.West Texas Intermediate crude oil was up 0.8% at $91.72 a barrel in Thursday late-afternoon trade, while Brent edged up 0.2% to $95.80.The Kuwaiti military said Thursday it was confronting missile and drone attacks from Iran.Earlier this week, the US Central Command said that its forces completed a wave of strikes against Iranian military targets.In company news, shares of Broadcom (AVGO) fell 2.7% after releasing its latest financial results. The chipmaker's guidance that its artificial intelligence revenue will double in fiscal 2027 was slightly below Wall Street's consensus but the company is likely to "handily" top the projection, Truist Securities said in a note.Snowflake (SNOW) jumped nearly 17% as the cloud-based data platform lifted its full-year product revenue outlook.Ciena (CIEN) was the worst performer on the S&P 500, down 10%, despite raising its full-year revenue outlook as the networking systems and software company reported better-than-expected fiscal third-quarter results.Campbell's (CPB) guided for a soft fiscal 2027 outlook amid persistent inflation worries and cut quarterly dividend. The stock slumped 7%.In economic news, US job cut announcements in August hit the lowest total for the month in four years, Challenger, Gray & Christmas said, ahead of the official jobs report due Friday.The US economy likely added 55,000 nonfarm jobs in August, compared with a loss of 23,000 reported for the month prior, according to a Bloomberg poll. The unemployment rate seen holding at 4.1%.Spot gold rose 2.1% to $4,471.47 per troy ounce, while silver advanced 3.2% to $67.58 per ounce.

Dow JonesNasdaq CompositeS&P 500$AVGO$CIEN$CPB$SNOW
New Home Listings Reach 4-Year High in August, Redfin Says
US Markets

New Home Listings Reach 4-Year High in August, Redfin Says

New home listings hit a four-year high in August as growing inventory gives homebuyers more options and increased negotiating power, Redfin said Thursday.New listings of for-sale homes in the US totaled 383,795 during the four weeks to Aug. 30, up 8% annually and 2.1% higher from a four-week period to Aug. 23.The print marked the highest level since August 2022, the online real estate brokerage said.Pending home sales declined 2.5% year on year and were essentially flat during the four weeks to Aug. 30 from a corresponding period to Aug. 23, with a 0.1% dip. At 308,282 units, pending sales reflected the lowest level since February."The disconnect between growing listings and sluggish sales is exacerbating the buyer's market we're seeing in most of the country," Redfin data journalist Dana Anderson wrote.Typical sale prices increased 2.2% year over year to $398,632, while the median asking price dropped 0.1% as sellers lowered expectations to accommodate buyers who are facing elevated housing costs and mortgage rates, according to the report.The 30-year fixed mortgage rate was 6.66% for the week ended Aug. 27, close to its highest level in the last year, Redfin said.Among the 50 most populous US metros, San Francisco posted the largest annual gain in the median sale price, at 9%, while Austin, Texas, recorded the steepest drop, at 7.1%.US home prices rose at the fastest annual pace in a year in July, driven by high-end demand in an otherwise sluggish housing market, Redfin said in August.Last month, government data showed that new home sales declined more than expected in July, despite a decrease in median prices.