STOXX Europe 600

Corporate Earnings, Easing Oil Prices Lift European Bourses Midday

European bourses tracked moderately higher midday Tuesday as oil prices eased and as the continental earnings season continued to pour in.Tech and energy stocks led gains on continental trading floors.UniCredit shares rose 5.6% mid-session after the company reported strong Q1 profits.Front-month North Sea Brent crude-oil futures were down 1% at $113.28 a barrel.Investors also eyed Wall Street futures in the green amid mixed closes overnight on Asian exchanges.In economic news, the European Union and Japan agreed to expand cooperation across data, digital identity, AI, quantum, infrastructure, standardization, and online platform issues, the EU-Japan Digital Partnership Council reported.The pan-continental Stoxx Europe 600 Index was up 0.5% mid-session.The Stoxx Europe 600 Technology Index was up 1.6%, and the Stoxx 600 Banks Index gained 0.1%.The Stoxx Europe 600 Oil and Gas Index rose 0.7%, while the Stoxx 600 Europe Food and Beverage Index edged 0.6% higher.The REITE, a European REIT index, gained 0.2%.On the national market indexes, Germany's DAX was up 1.3%, but the FTSE 100 in London lost 1.3%. The CAC 40 in Paris was up 0.6%, and Spain's IBEX 35 advanced 1.5%.Yields on benchmark 10-year German bonds were higher, near 3.1%.The Euro Stoxx 50 volatility index was down 3.3% at 24.08, 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.

Spanish Unemployment Numbers Decrease in April

The number of individuals registered as unemployed in Spain fell by 62,668 in April, after a decrease of 22,934 in March, according to government data published Tuesday.Analysts expected a decrease of 18,600 in unemployment levels for the month.

Market Chatter: EU Eyes More Free Carbon Permits in Planned Methodology Adjustment

The European Commission is considering increasing the number of free carbon permits available to polluting companies by adjusting the benchmarks used to calculate the size of such allocations.Under the proposal, the benchmarks will now also take into account indirect emissions instead of just direct emissions, Bloomberg News reported Monday, citing a document shared with EU member states on April 30.The updated benchmarks are planned to undergo public consultation from early May until the start of June before being up for approval by the EU's Climate Change Committee. The free carbon permits will then be allocated for the 2016 to 2030 period.The European Commission did not immediately respond to a request for comment from.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Persian Gulf, Oil Outlooks Damp European Bourses Midday

European bourses tracked moderately lower midday Monday and oil prices again edged higher after unverified reports from Iranian news services claimed two missiles struck a US warship in the Strait of Hormuz.Petroleum stocks led gains on continental trading floors while bank, food and property shares lagged.Front-month North Sea Brent crude-oil futures were up 3.5%, at $111.91 a barrel in midday trades.Investors also eyed muted Wall Street futures amid higher closes overnight on Asian exchanges, led by a 4.6% gain on Taiwan's TWSE Index, while Seoul's KOSPI Index rose 5.1%.In economic news, the Eurozone manufacturing purchasing managers index logged at 52.2 in April, up from 51.6 in March, surpassing the 50-mark that separates growth from contraction, S&P Global reported.The pan-continental Stoxx Europe 600 Index was off 0.5% mid-session.The Stoxx Europe 600 Technology Index was down 0.2%, and the Stoxx 600 Banks Index lost 1.2%.The Stoxx Europe 600 Oil and Gas Index gained 0.2%, while the Stoxx 600 Europe Food and Beverage Index declined 0.7%.The REITE, a European REIT index, fell 0.7%.On the national market indexes, Germany's DAX was steady, and the FTSE 100 in London lost 0.1%. The CAC 40 in Paris was down 1%, and Spain's IBEX 35 eased 1.5%.Yields on benchmark 10-year German bonds were higher, near 3.07%.The Euro Stoxx 50 volatility index was up 4.8% at 23.71, 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.

Eurozone Manufacturing PMI Hits 47-month High in April as Iran War Triggers Stockpiling

The euro area's manufacturing sector remained in expansion territory in April, bolstered by higher output levels and new orders as the ongoing crisis in the Middle East led to stockpiling.The S&P Global Eurozone Manufacturing PMI reached a 47-month high of 52.2 in April, matching the flash estimate and rising from 51.6 in the previous month, according to final data published Monday.Euro area factories logged an increase in production volumes, marking the strongest level of growth since August 2025. This was supported by growth in new orders, a further improvement in demand conditions, and higher sales on the back of front-loaded purchasing. Overseas demand for new orders also increased for the first month in just over four years."Although the PMI has risen to its highest for nearly four years, the survey is more a cause for alarm than celebration. Production and orders books are being buoyed by the building of safety stocks as a result of widespread concerns over supply shortages and rising prices emanating from the war in the Middle East," said S&P Global Market Intelligence Chief Business Economist Chris Williamson.Business optimism about output growth over the next 12 months weakened further, falling to its lowest level since November 2024."Manufacturers' optimism about the year ahead has sunk to its gloomiest for nearly one-and-a-half years, the war having shattered the growing confidence that had been building earlier in the year," Williamson noted. "Producers are concerned not only that the war will dampen demand, building on existing headwinds such as US tariffs and the Ukraine war, but also that war-related supply shortages will curb production in the months ahead."All eight eurozone countries covered by the survey reported growth in their manufacturing sectors, marking the first time all of their PMI readings stood above the neutral 50 threshold since June 2022. Ireland posted the strongest growth, while Germany, France, Italy, and Spain saw "modest" rates of increase.

Eurozone Final Manufacturing PMI Hits 47-month High in April

The euro area's manufacturing sector saw renewed growth in April, supported by an increase in production levels on the back of higher new orders, according to final data from S&P Global published Monday.The S&P Global Eurozone Manufacturing PMI rose to a 47-month high of 52.2 in April, matching the flash estimate, compared with the previous month's 51.6.

Germany's Manufacturing Growth Softens in April, Final PMI Data Shows

German manufacturing sector expansion eased in April as growth in both output and new orders was offset by weaker morale due to the Middle East conflict, S&P Global said Monday.The final headline S&P Global Germany manufacturing PMI slipped to 51.4, from the 46-month high of 52.2 in March. The flash estimate for April stood at 51.2.

Italian Manufacturing PMI Hits Four-year High in April

Operating conditions in Italy's manufacturing sector improved the most in April in four years as producers ramped up output even as the Middle East conflict impacted demand, supply chain, and costs, S&P Global said Monday.The S&P Global Italy manufacturing PMI rose to a four-year high of 52.1 in April from 51.3 in March, against the consensus estimate of 51.9.

Final PMI: French Manufacturing Sector Growth Accelerates in April Amid New Orders

France's manufacturing sector activity accelerated in April, as a "strong rise" in new orders fueled higher production levels despite intensifying price pressures, S&P Global data showed Monday.The final France Manufacturing PMI climbed to 52.8 from 50 in March 2026, in line with the flash estimate. Reaching its highest point since May 2022, the reading signals "solid improvement" within the French manufacturing sector.

S&P: Spanish Manufacturing Sector Rebounds in April

Spain's manufacturing sector conditions improved in April 2026 for the first time since November 2025, thanks to output growth and a "broad stabilisation" of new orders, S&P Global said Monday.The seasonally adjusted S&P Global Spain manufacturing PMI rose to 51.7 from 48.7 a month earlier, against the consensus estimate of 49.5. The survey noted further inflation and supply chain disruptions due to the Iran war.

Ifo: German Automotive Businesses Become More Negative About Outlook in April

Morale across the German automotive industry weakened in April, as the Iran war made companies more pessimistic about the coming months despite a better assessment of their current business situation.The business climate indicator dropped to -23.8 points from -19.0 points in March, the ifo Institute said Monday. Business expectations declined to -30.7 points from -15.3 points.The ifo business survey also showed that automotive companies facing a shortage of key intermediate products like helium grew to 9.3% in April, from 1% in March. Meanwhile, businesses expect high energy prices to impact car purchases.

London Lower in Holiday-Thinned Trading in Europe

London's FTSE 100 Index declined 0.5% midday Friday in Europe, while exchanges in Frankfurt, Madrid, Paris and elsewhere on the continent were closed for the May Day observance.Investors eyed stable Wall Street futures, and higher closes overnight in Sydney and Tokyo, although most Asian exchanges were also shuttered on holiday.The FTSE 100 through Thursday had notched 13 straight trading days of gains, but investors Friday again faced rising crude prices and interest rates.Yields on benchmark 10-year German bonds were higher, near 3.03% mid-session, while front-month North Sea Brent crude oil futures were up 0.5% at $110.92 a barrel.

Deutsche Bank: ECB Flags Intensifying Inflation, Growth Risks Posed by Middle East War

A June interest rate increase may be on the cards for the European Central Bank as it flagged increased upside risks to inflation and downside risks to growth due to the war in the Middle East, according to Deutsche Bank Research.The ECB on Thursday maintained its three key interest rates, as expected, but noted that a prolonged war would have a greater impact on broader inflation and the euro area economy. The central bank said its Governing Council "remains well positioned" to navigate the current uncertainty, while noting that it is "not pre-committing to a particular rate path.""Overall, this is a statement that does not pre-commit the ECB to hiking in June. But it does not stop the ECB from hiking in June either," Deutsche Bank's Chief European Economist Mark Wall said in a same-day quick take note.

ECB Keeps Rates Unchanged, Warns on Potential Impact of Middle East Crisis on Inflation

The European Central Bank maintained its three key interest rates on Thursday even as it sounded the alarm on the potential impact of a prolonged conflict in the Middle East on inflation and economic growth.The central bank's deposit facility rate remains at 2%, while the interest rates on main refinancing operations and marginal lending facility were also unchanged at 2.15% and 2.40%, respectively. The decision was consistent with the consensus estimate, with the rates unchanged since June 2025.Preliminary data released earlier the same day showed annual inflation in the eurozone accelerated to 3% in April from 2.6% in March, mainly due to a surge in energy prices."The war in the Middle East has led to a sharp increase in energy prices, pushing up inflation and weighing on economic sentiment," the central bank said. "The implications of the war for medium-term inflation and economic activity will depend on the intensity and duration of the energy price shock and the scale of its indirect and second-round effects. The longer the war continues and the longer energy prices remain high, the stronger is the likely impact on broader inflation and the economy."

European Central Bank Keeps Rates Unchanged

Central Bank Decisions Undergird European Bourses Midday

European bourses tracked higher midday Thursday as traders weighed Persian Gulf tensions, the earnings season, and a Bank of England decision to hold rates steady.Food stocks led gains on continental trading floors, while bank shares lagged.Investors also eyed Wall Street futures in the green, but mostly lower closes overnight on Asian exchanges.The Bank of England announced it will hold its key policy interest rate unchanged at 3.75%, hours ahead of a European Central Bank (ECB) decision that is also expected to hold the policy rate steady, although at 2%.In economic news, euro area annual inflation is expected to log at 3% on year in April, up from 2.6% in March, reported Eurostat.In Q1, seasonally adjusted gross domestic product (GDP) increased by a tepid 0.1% in both the euro area and the EU, said Eurostat.The pan-continental Stoxx Europe 600 Index was up 0.6% mid-session.The Stoxx Europe 600 Technology Index was up 0.5%, and the Stoxx 600 Banks Index lost 0.7%.The Stoxx Europe 600 Oil and Gas Index rose 0.4%, while the Stoxx 600 Europe Food and Beverage Index inclined 1.2%.The REITE, a European REIT index, rose 0.4%.On the national market indexes, Germany's DAX was up 0.7%, and the FTSE 100 in London gained 1.3%. The CAC 40 in Paris was down 0.1%, and Spain's IBEX 35 lifted 0.1%.Yields on benchmark 10-year German bonds were lower, near 3.07%.Front-month North Sea Brent crude oil futures were down 1.1% at $109.19 a barrel.The Euro Stoxx 50 volatility index was up 1.8% at 23.77, 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.

Eurozone Economy Slows in First Quarter; April Inflation Hits 3% as Energy Prices Surge

The euro area economy slowed in the first quarter, while annual inflation accelerated in April on the back of surging energy costs, preliminary data showed Thursday.The eurozone's monthly gross domestic product ticked up 0.1% in the first quarter, against the prior three-month period gain and market forecast of 0.2%, according to Eurostat's flash data. On an annual basis, the economy expanded 0.8%, down from the previous quarter's growth rate of 1.3% and an expected 0.9% gain.Data released earlier on Thursday showed that French GDP stalled in the first quarter after a 0.2% uptick in the previous three-month period, missing analyst expectations of continued 0.2% growth. In contrast, data from Spain showed that the national economy continued to expand, though growth eased slightly to 0.6% from 0.8%. Meanwhile, Germany's GDP edged up to 0.3% from 0.2% in the prior quarter, beating consensus estimates of a 0.1% uptick.In terms of inflation, the consumer price index in the euro area climbed 3% year over year in April, in line with consensus and compared with 2.6% in March. On a monthly basis, consumer prices came in 1% higher.Energy prices emerged as the primary driver of April inflation, with the annual rate more than doubling to 10.9% from March's 5.1%. Elsewhere, services inflation slowed, while the increase in food, alcohol, and tobacco prices, as well as non-energy industrial goods, edged slightly higher.Excluding energy, food, alcohol and tobacco, inflation was 2.2% in April, coming in slightly below both the previous month's reading and market forecast of 2.3%.On the labor front, the seasonally adjusted unemployment rate in the euro area stood at 6.2% in March, down from the revised 6.3% in February. The latest reading is consistent with the market forecast.Against this backdrop, the ECB is anticipated to hold the deposit rate steady at 2% during Thursday's meeting. In a preview report published April 24, Danske Bank expects the market to focus on future policy cues."With an unchanged decision in April all focus during the meeting will be on signals, and we expect Lagarde to leave the door open for summer hikes in order to keep inflation expectations anchored. The ECB is likely broadly satisfied with the current market pricing of 65 [basis points] worth of hikes this year. Although we do see room for market pricing falling slightly as most recent communication from the ECB's [Governing Council] members has increasingly mentioned deteriorating growth prospects from higher energy prices. For this reason and given the extraordinary uncertainty about the economic outlook, we do not expect any pre-commitments to summer hikes," Danske Bank wrote.

Italian Annual Inflation Rate Climbs to 2.8% in April, Preliminary Data Shows

Italy's annual inflation rate climbed to 2.8% in April from 1.7% in March, provisional data from statistics agency Istat showed Thursday, above the consensus estimate of 2.6%.On a monthly basis, consumer prices were up 1.2%, compared with the prior and expected 0.5% gain.The Italian harmonized inflation rate stood at 2.9% on an annual basis, against the previous reading of 1.6% and the expected 2.5%. Month over month, growth in harmonized consumer prices stayed at 1.7%, against the forecast of 1.3%.

Eurozone's Quarterly GDP Ticks Up 0.1% in Q1, Flash Data Shows

The euro area's quarterly gross domestic product ticked up 0.1% in the first quarter, after a 0.2% rise in the prior three-month period, flash data from Eurostat showed Thursday.Analysts expected a 0.2% growth.On a yearly basis, the eurozone economy grew by 0.8% during the quarter, against the previous 1.3% gain including Bulgaria, which joined the currency union in January, and 1.2% rise, excluding it. The consensus estimate was a 0.9% increase.

Eurozone's Flash Annual Inflation Rate Rises to 3% in April

Annual inflation in the euro area jumped to 3% in April from 2.6% in March, according to Eurostat flash estimates released Thursday.The latest reading is above the consensus estimate of 2.9%.On a monthly basis, consumer prices were 1% higher.Excluding energy, food, alcohol and tobacco, the annual inflation rate came in at 2.2%, lower than the previous and expected 2.3%. Month over month, core consumer prices rose 0.9%.