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Ifo: Pace of German Job Cuts 'Somewhat' Decelerates in May

More German companies are still planning layoffs amid "weak" economic development, but the job cuts "somewhat" slowed in May, the Ifo Institute said Wednesday.The ifo Employment Barometer edged up to 93.9 points in May from April's 91.4 points. However, ifo head of forecasts Timo Wollmershäuser noted that companies "remain cautious in their personnel planning."While manufacturing, retail and wholesale continue to shed jobs, the service sector recovered from the prior month's slump. Meanwhile, labor market conditions in logistics and tourism are still "difficult," and the construction industry's situation was "virtually unchanged."

French Household Confidence Hits Lowest Level Since March 2023

France's household confidence indicator dropped to 82 points in May 2026, marking its lowest overall level since March 2023.A month earlier, the reading was 84 points, according to data from the national statistics agency Insee published Wednesday. The indicator moved further away from the long-term average of 100 points.Analysts expected 83 points for the month.

EU New Car Registrations Rise 5.1% in April

The European Union's new car registrations increased 5.1% year over year to 972,314 units in April, according to data from the European Automobile Manufacturers' Association published Wednesday.In the first four months of 2026, new car registrations in the EU totaled 3,794,280 units, reflecting a 4.2% annual increase.

Market Chatter: Canada Reportedly Strikes LNG Supply Deal with Germany's SEFE

Canada reportedly reached a deal to supply German energy company SEFE with as much as 1 million metric tons of liquefied natural gas annually.The LNG will be supplied from the planned CA$10 billion Ksi Lisims project in British Columbia, Bloomberg News reported Tuesday, citing people familiar with the matter.A deal could be announced by the Canadian Minister of Energy and Natural Resources Tim Hodgson on Wednesday, the report added.SEFE, Canada's Natural Resources Ministry, and Ksi Lisims LNG did not immediately respond to requests for comments 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.)

European Bourses Mixed Midday as Markets Monitor Middle East Conflict

European bourses were mixed around midday Tuesday as investors continue to monitor tensions in the Middle East after new US military strikes on Iran.Wall Street futures were advancing premarket, while major Asian markets closed the day in the red.In regional news, the Confederation of British Industry distributive trade survey's retail sales balance improved to -46% in May from -68% in the prior month, according to published data.Export expectations in Germany weakened further this month, as the industry outlook "remains challenging" amid ongoing geopolitical instability, the ifo Institute said.Producer prices in Spain jumped 8.3% year over year in April, following a revised 3.1% increase the month prior, data from the National Statistics Institute showed.The pan-continental Stoxx Europe 600 Index was down 0.2%.The Stoxx Europe 600 Technology Index fell by 1.1%, while the Stoxx 600 Banks Index was 0.3% higher.The Stoxx Europe 600 Oil and Gas Index declined by 0.2% and the Stoxx 600 Europe Food and Beverage Index was down 0.1%.The REITE, a European REIT index, advanced by 0.5%.On the national market indexes, Germany's DAX was down 0.5%, and the FTSE 100 in London was 0.6% higher. The CAC 40 in Paris was off 0.9%, and Spain's IBEX 35 was marginally advancing.Yields on benchmark 10-year German bonds were little changed.Front-month North Sea Brent crude-oil futures were 2.6% higher at $98.59 per barrel.The Euro Stoxx 50 volatility index was down 0.4% to 19.77. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

Ifo: German Export Outlook Declines in May as Geopolitical Uncertainty Persists

Export expectations in Germany weakened further in May, as the industry outlook "remains challenging" amid ongoing geopolitical instability, the ifo Institute said Tuesday.The ifo export expectations dropped to -5.5 points in May, from -1.2 points in April, with the automotive, metal, and other energy-intensive industries expecting a decline in international sales.On the other hand, the electrical sector maintains a "moderately optimistic" export outlook, though it has cooled slightly from last month. Similarly, furniture manufacturers anticipate a boost in foreign sales.

Spanish Annual Producer Prices Up 8.3% in April

Producer prices in Spain jumped 8.3% year over year in April, following a revised 3.1% increase previously, data from the National Statistics Institute showed Tuesday.On a monthly basis, the industrial price index was 1.7% higher, after a revised 6.2% growth in March.

ECB's Schnabel Says June Rate Hike 'Needed' to Combat Sustained Inflation Shock

The European Central Bank will likely need to raise interest rates at the upcoming June meeting amid a "much more persistent" inflation shock, according to ECB executive board member Isabel Schnabel."The shock is working its way through the economy and is shifting inflation away from our target over a significant period of time. Even if the war ended today, a lot of damage has already been done to energy infrastructure and global supply chains. So, even then, I believe that a monetary policy reaction would be needed," Schnabel told Reuters in an interview published Tuesday.As headline inflation in the euro area hit 3% and is projected to climb toward 4% by the end of 2026, Schnabel added that "looking through is no longer an option in my view." However, she maintained that the central bank remains "strictly data dependent" and will avoid pre-committing to a specific policy path past June.

Fitch Affirms Belgium's Issuer Default Rating on Diversified Economy; Outlook Stable

Fitch affirmed its A+ long-term issuer default rating for Belgium, with a stable outlook, according to a May 22 release.The rating is based on Belgium's wealthy, diversified economy and its eurozone membership, combined with its income per capita and governance metrics surpassing its A peer median. However, Fitch noted that these factors are offset by the country's "very high and rising" government debt, alongside a complex political and institutional framework that hinders fiscal reform efforts.The rating agency forecasts that without additional budget reforms, Belgium's debt-to-gross domestic product ratio will climb past 115% of its gross domestic product by 2030. Concurrently, Fitch forecasts the country's real GDP growth to decelerate to 0.8% in 2026, down from 1% in 2025, as energy-driven inflation from the Iran conflict is expected to dampen domestic demand.

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