^SXXP

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.

EU Remains Committed to Russian Oil Sanctions Despite Easing by US, UK

The European Commission remains committed to its sanctions on Russian oil and gas imports, chief spokesperson Paula Pinho said during a Wednesday press briefing.When asked about the US and UK easing sanctions on Russian oil imports, Pinho declined to comment on other countries' policies and reiterated "the call for Russians not to be benefiting" from the ongoing war in the Middle East.

Easing Oil, Interest Rates Undergird European Bourses Midday

European bourses tracked moderately higher midday Wednesday as traders weighed easing interest rates and oil prices and awaited clarity on Persian Gulf hostilities.Tech and property stocks led gains on continental trading floors, while food shares lagged.Yields on benchmark 10-year German bonds were lower, near 3.16%, while front-month North Sea Brent crude-oil futures were down 3% at $108.78 a barrel.Investors also eyed Wall Street futures in the green amid lower closes overnight on Asian exchanges.In economic news, the UK consumer price index rose 2.8% year over year in April, down from March's 3.3%, the Office for National Statistics reported. However, the CPI in April was up 0.7% month over month.The pan-continental Stoxx Europe 600 Index was up 0.4% mid-session.The Stoxx Europe 600 Technology Index advanced 1.2%, and the Stoxx 600 Banks Index gained 0.5%.The Stoxx Europe 600 Oil and Gas Index rose 0.5%, while the Stoxx 600 Europe Food and Beverage Index declined 0.6%.The REITE, a European REIT index, advanced 0.7%.On the national market indexes, Germany's DAX was up 0.5%, and the FTSE 100 in London gained 0.1%. The CAC 40 in Paris was up 0.6%, and Spain's IBEX 35 lifted 0.5%.Yields on benchmark 10-year German bonds were lower, near 3.16%.Front-month North Sea Brent crude-oil futures were down 3% at $108.78 a barrel.The Euro Stoxx 50 volatility index was steady near 22.96, 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's Annual Inflation Rate Confirmed at 3% in April

Annual inflation rate in the euro area jumped to 3% in April from 2.6% in March, according to final data from Eurostat published Wednesday.The final reading is consistent with the flash estimate.On a monthly basis, consumer prices were 1% higher, matching the preliminary reading.Excluding energy, food, alcohol and tobacco, the annual inflation rate came in at 2.2%, in line with the initial reading and down from the previous month's 2.3%. Month over month, core consumer prices were 0.9% higher, confirming the preliminary estimate.

Italy's Annual Construction Output Down 0.2% in March

Italy's calendar-adjusted construction output index declined 0.2% year over year in March, following the revised 0.8% rise in February, statistics agency Istat said Wednesday.On a monthly basis, the country's seasonally adjusted construction output dropped 0.7%, against the revised 0.1% decrease earlier.

German Annual Producer Prices Up 1.7% in April

The producer prices of industrial products in Germany increased 1.7% year over year in April, following a 0.2% decline in the previous month, the country's Federal Statistical Office said Wednesday.The consensus estimate for the month was a 1.5% rise.On a monthly basis, producer prices were 1.2% higher, against the expected 1% growth.

Middle East, Oil Outlooks Lift European Bourses Midday

European bourses tracked moderately higher midday Tuesday after US President Donald Trump late Monday declared Persian Gulf peace negotiations were again on the table and as oil prices softened.Front-month North Sea Brent crude-oil futures were down 1.1% at $110.85 a barrel, in midday activity.Tech, food and property stocks led gains on continental trading floors.Shares in Lagercrantz were up 6.7% midday after the company reported fiscal Q4 earnings above expectations.Investors also eyed Wall Street futures flashing red amid choppy closes overnight on Asian exchanges.In economic news, the Europe must accelerate clean electrification to win "true independence" from the vagaries of imported oil and gas, European Commission President Ursula von der Leyen said, addressing the EU's Clean Tech Conference.The pan-continental Stoxx Europe 600 Index was up 0.8% mid-session.The Stoxx Europe 600 Technology Index was 1.2% higher, and the Stoxx 600 Banks Index gained 0.7%.The Stoxx Europe 600 Oil and Gas Index advanced 03%, while the Stoxx 600 Europe Food and Beverage Index rose 1.3%.The REITE, a European REIT index, was 1.1% higher.On the national market indexes, Germany's DAX was up 1.4%, and the FTSE 100 in London gained 0.5%. The CAC 40 in Paris was up 0.7%, and Spain's IBEX 35 gained 0.3%.Yields on benchmark 10-year German bonds were higher, near 3.17%.The Euro Stoxx 50 volatility index was down 2.9% at 22.57, 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 Trade Surplus Declines in March

The euro area recorded a trade surplus of 7.8 billion euros in March, a decrease from the revised surplus of 11.1 billion euros in the previous month, according to Eurostat data published Tuesday.The consensus estimate for the month was 5.4 billion euros.Exports of goods to the rest of the world declined 5.5% year over year to 265.3 billion euros, while imports rose 4.4% to 257.4 billion euros.

Spanish Trade Deficit Widens in March

Spain's trade deficit increased to 4.37 billion euros in March, compared with 3.30 billion euros in February, according to government data published Tuesday.Exports rose 13.1% month over month to 35.86 billion euros, while monthly imports increased 14.9% to 40.23 billion euros.

Rising Interest Rates, Oil Prices Weigh on European Bourses Midday

European bourses drifted moderately lower midday Monday as traders watched oil prices and interest rates track higher amid expectations for a possible renewed military conflict in the Middle East.Oil stocks led gains on continental trading floors, while bank shares lagged.Yields on benchmark 10-year German bonds were higher, near 3.18%, the highest yield since 2011.Front-month North Sea Brent crude-oil futures were up 1.2% at $110.54 a barrel. The Strait of Hormuz remained largely closed to oil-tanker traffic.Investors also eyed Wall Street futures flashing red amid lower closes overnight on Asian exchanges.In economic news, Switzerland's Q1 gross domestic product expanded 0.5% from Q4, the Swiss State Secretariat for Economic Affairs reported. For all of 2025, the nation's GDP expanded by 1.4% from 2024.The pan-continental Stoxx Europe 600 Index was off 0.4% 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 rose 1.8%, while the Stoxx 600 Europe Food and Beverage Index declined 0.3%.The REITE, a European REIT index, was 0.3% lower.On the national market indexes, Germany's DAX was steady, but the resource-heavy FTSE 100 in London gained 0.3%. The CAC 40 in Paris was down 1%, and Spain's IBEX 35 eased 0.7%.The Euro Stoxx 50 volatility index was up 5.6% at 23.52, 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.