STOXX Europe 600

Tech Bulls Elevate European Bourses Midday

European bourses tracked moderately higher midday Friday as traders reviewed statements from Washington and Middle East capitals regarding peace negotiations, but also joined the global rally in AI-related equities.Tech and bank stocks led gains on continental trading floors, while oil shares lagged.Investors also eyed muted Wall Street futures, but higher closes overnight on Asian exchanges, including a fresh all-time zenith on Japan's Nikkei 225 index.In economic news, Germany's business climate index rose to 84.9 in May from 84.5 last month, reported the Institute for Economic Research (Ifo). "The German economy is stabilizing for the time being, although situation remains fragile," said Ifo.The pan-continental Stoxx Europe 600 Index was up 0.4% mid-session.The Stoxx Europe 600 Technology Index was up 1.7%, and the Stoxx 600 Banks Index gained 0.6%.The Stoxx Europe 600 Oil and Gas Index eased 0.5%, while the Stoxx 600 Europe Food and Beverage Index inclined 0.6%.The REITE, a European REIT index, rose 0.1%.On the national market indexes, Germany's DAX was up 0.6%, and the FTSE 100 in London gained 0.2%. The CAC 40 in Paris was up 0.3%, and Spain's IBEX 35 lifted 0.1%.Yields on benchmark 10-year German bonds were lower, near 3.06%.Front-month North Sea Brent crude-oil futures were up 2.9% at $105.56 a barrel.The Euro Stoxx 50 volatility index was down 1.8% at 21.36, but still indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

German Ifo Business Climate Improves in May

Germany's business climate index edged up to 84.9 points in May from the revised 84.5 points in April, according to data from the ifo Institute published Friday.Analysts expected 84.2 points for the month.Meanwhile, the current situation index stood at 86.1 points, against the prior 85.4 points and the market forecast of 85.1 points.The expectations indicator rose to 83.8 points from the revised 83.5 points earlier and the consensus estimate of 83.5 points.

French Business Climate Worsens in May

France's business climate indicator edged down to 93.6 in May from the revised 94.1 in April, according to data from the country's statistical agency Insee published Friday.The latest reading, which missed the market forecast of 94, moved away from the index's long-term average of 100.For the manufacturing sector alone, the index came in at 102.3, against the revised prior reading of 100.4 and the consensus estimate of 100.

GfK: German Consumer Sentiment to Rebound in June

German consumer sentiment is expected to slightly improve in June, with the indicator up to -29.8 points from the revised -33.1 points in May, Growth from Knowledge said Friday.Analysts expected -33.7 points for the month, according to Investing.com data.The latest reading reflects a "noticeably more positive" income expectations among German consumers, albeit their willingness to buy remains subdued.

German Quarterly GDP Up 0.3% in Q1, Final Data Shows

Germany's quarterly gross domestic product ticked up 0.3% in the first quarter, after a 0.2% gain in the prior three-month period, final data from the Federal Statistical Office showed Friday.The final reading matched the flash estimate.On a yearly basis, the German economy expanded by 0.4% during the quarter, against the initial reading of a 0.3% rise.

Update: IMF Cuts French Growth Outlook for 2026 Amid High Uncertainty

(Updates to add more information)The International Monetary Fund downwardly revised its economic growth forecast for France in 2026 amid domestic uncertainty ahead of the 2027 election, as well as headwinds from the Middle East War.The IMF now expects France's economy to grow 0.7% in 2026, slower than the 0.9% rise recorded in 2025, according to a concluding statement published Thursday following an official staff visit. Just last month, it predicted a 0.9% economic expansion for the year.Additionally, the IMF said France's fiscal deficit fell to 5.1% of gross domestic product in 2025, although it noted that fiscal consolidation is still slower than expected and subject to "significant implementation risks."

IMF Cuts French Growth Outlook for 2026 Amid High Uncertainty

The International Monetary Fund downwardly revised its economic growth forecast for France in 2026 amid domestic uncertainty ahead of the 2027 election, as well as headwinds from the Middle East War.The IMF now expects France's economy to grow 0.7% in 2026, slower than the 0.9% rise recorded in 2025, according to a concluding statement published Thursday following an official staff visit. Just last month, it predicted a 0.9% economic expansion for the year.

Upswinging Crude Prices Undercut European Bourses Midday

European bourses tracked moderately lower midday Thursday as traders eyed rising oil prices and mulled odds for a Persian Gulf peace deal.Front-month North Sea Brent crude-oil futures were up 1.7% at $106.78 a barrel.Bank and tech stocks led losses on continental trading floors, while property and food shares edged higher.Investors also eyed Wall Street futures flashing red, but higher closes overnight on Asian exchanges.In economic news, the flash Eurozone composite purchasing managers index, a combination of the continent's manufacturing and service sectors, logged at 47.5 in May, down from April's 48.8, and striking further below the 50-mark that separates growth from contraction, reported S&P Global.The pan-continental Stoxx Europe 600 Index was off 0.2% mid-session.The Stoxx Europe 600 Technology Index was down 0.7%, and the Stoxx 600 Banks Index lost 1.2%.The Stoxx Europe 600 Oil and Gas Index eased 0.2%, while the Stoxx 600 Europe Food and Beverage Index inclined 0.2%.The REITE, a European REIT index, rose 0.2%.On the national market indexes, Germany's DAX was down 0.6%, and the FTSE 100 in London lost 0.4%. The CAC 40 in Paris was down 0.5%, and Spain's IBEX 35 eased 0.6%.Yields on benchmark 10-year German bonds were higher, near 3.11%.The Euro Stoxx 50 volatility index was up 0.9% at 22.58, indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

EU Commission Revises Eurozone GDP Growth, Inflation Rate Forecasts in Spring Report

The European Commission on Thursday revised its economic forecasts for the eurozone, expecting a slowdown in growth as the Middle East conflict-driven energy shock fuels inflation.According to the bloc's Spring 2026 Economic Forecast report, the euro area's gross domestic product is now expected to grow 0.9% in 2026 and 1.2% in 2027, down from the 1.2% and 1.4% provided in the Autumn report published in November 2025. Meanwhile, economic growth in the European Union is anticipated to ease to 1.1% in 2026 from the previous estimate of 1.4%, before ticking up to 1.4% in 2027, lower than the expected 1.5% earlier.On the consumer prices front, the commission expects the euro area's annual inflation rate to reach 3% in 2026 and 2.3% in 2027, above the prior projections of 1.9% and 2%, respectively. Additionally, EU inflation is projected at 3.1% in 2026, a 1 percentage point upward revision from the previous outlook, before slowing to 2.4% the following year. Inflation in 2027 was previously expected at 2.2%."Headline inflation is now set to peak in 2026 before easing in 2027, as energy commodity prices are expected to gradually decline, albeit remaining around 20% above pre-war levels," the report said.

Euro Area Inflation Forecast Revised Up to 3% in 2026; EU Inflation Estimate at 3.1%

Euro Area Growth Projections Revised Down to 0.9% in 2026

EU Cuts Economic Growth Outlook for 2026 to 1.1% Amid Middle East Conflict

Euro Area's Annual Labor Costs Up 3.3% in Q1

Hourly labor costs in the eurozone rose 3.3% year over year in the first quarter, consistent with growth in the prior three-month period, Eurostat said Thursday.Meanwhile, wages and salaries in the region grew 3.4% on an annual basis, against the 3% increase earlier, according to Trading Economics.

Eurozone's Monthly Construction Output Down 0.8% in March

The euro area's seasonally adjusted construction production rose 0.8% month over month in March, following a revised 0.8% decline in February, according to Eurostat data published Thursday.On a yearly basis, the eurozone's construction output dropped 1.2%, against the revised 3% decrease earlier.

Update: Flash PMI: Eurozone Private Sector Activity Further Contracts in May Amid Rising Cost Pressures

(Updates to add more information)The euro area's private sector economy stayed in contraction territory for the second straight month, as escalating cost pressures drove sharper drops in production and new orders.The S&P Global Flash Eurozone Composite PMI Output Index hit a 31-month low of 47.5 in May, lower than the previous and expected 48.8, flash data from S&P Global showed Thursday. The reading marks a sharp decline in monthly business activity, particularly in France.Meanwhile, the services PMI reached a 63-month low of 46.4, compared with the earlier reading of 47.6 and the Investing.com consensus estimate of 47.8. On the manufacturing side, the PMI stood at a three-month low of 51.4, from the prior month's 52.2 and market forecast of 51.7.

Italian Current Account Surplus Drops in March

Italy's current account surplus slipped to 1.75 billion euros in March from a revised surplus of 3.56 billion euros in February.In the 12 months to March, the Italian current account surplus totaled 31.58 billion euros, against a surplus of 18.97 billion euros in the previous year, according to data from the Bank of Italy published Thursday.

Eurozone Current Account Surplus Falls in March

The euro area's seasonally adjusted current account surplus declined to 15 billion euros in March from the revised 26 billion euros in the previous month, European Central Bank data showed Thursday.The consensus estimate for the month stood at 25.3 billion euros.In the 12 months to March, the bloc's current account surplus totaled 275 billion euros, against 368 billion euros a year earlier.

Flash PMI: Eurozone Private Sector Activity Further Contracts in May Amid Rising Cost Pressures

The euro area's private sector economy stayed in contraction territory for the second straight month, as escalating cost pressures drove sharper drops in production and new orders.The HCOB Flash Eurozone Composite PMI Output Index hit a 31-month low of 47.5 in May, lower than the previous and expected 48.8, flash data from Hamburg Commercial Bank and S&P Global showed Thursday.Meanwhile, the services PMI reached a 63-month low of 46.4, compared with the earlier reading of 47.6 and the Investing.com consensus estimate of 47.8. On the manufacturing side, the PMI stood at a three-month low of 51.4 from the prior month's 52.2 and market forecast of 51.7.

German Private Sector Contraction Continues for Second Straight Month in May, Flash Data Shows

German private sector businesses saw a decline in activity for the second month in a row in May, led by the service sector, as demand remained weak while cost pressures intensified, flash data from S&P Global showed Thursday.The Flash Germany Composite PMI Output Index reached a two-month high of 48.6 in May, up from the April reading and consensus estimate of 48.4 but below the 50-point neutral mark.For the manufacturing sector, the PMI was at a four-month low of 49.9, against the prior reading of 51.4 and the forecast of 51. On the services side, the PMI hit a two-month high of 47.8, compared with the previous 46.9 and consensus estimate of 47.

France's Flash Composite PMI Falls to 66-month Low in May

France's private sector economy tumbled deeper in contraction territory in May, as the conflict in the Middle East led to a faster decline in services activity alongside a renewed downturn in manufacturing output, data from S&P Global showed Thursday.The S&P Global Flash France Composite PMI Output Index fell to a 66-month low of 43.5 in May, down from the prior reading of 47.6 and the expected 47.7.For the manufacturing sector, the PMI was at a six-month low of 48.9, lower than the April figure of 52.8 and consensus estimate from Investing.com of 52.1. The services PMI also clocked in at a 66-month low of 42.9, compared with the previous 46.5 and market forecast of 46.6.