Latest news with #EuroArea
Bloomberg
2 days ago
- Business
- Bloomberg
Euro-Zone Inflation Ticks Higher to Match ECB's 2% Target
Euro-area inflation settled at the European Central Bank's target in June, strengthening arguments to press pause on a year-long campaign of interest-rate cuts. Consumer prices rose 2% from a year ago, up from May's 1.9%, Eurostat said Tuesday. That matched the median estimate in a Bloomberg survey. Core inflation held steady at 2.3%, as expected, while the closely watched services gauge edged up to 3.3%.
Bloomberg
2 days ago
- Business
- Bloomberg
Euro-Zone Inflation Set to Advance for First Time Since January
Euro-area inflation probably quickened for the first time since the start of the year in June, though matched the European Central Bank's goal in the process, according to economists. Having been in retreat since January, consumer prices rose 2% from a year ago this month, up from 1.9% in May, a Bloomberg survey showed.
Zawya
25-06-2025
- Business
- Zawya
Euro area yields mixed, Iran-Israel ceasefire and fiscal outlook in focus
Euro area government bond yields were mixed on Wednesday as investors weighed expectations that the Iran-Israel ceasefire would hold alongside concerns about increased fiscal spending across the euro area. Germany's cabinet approved a draft budget with record investments on Tuesday. Meanwhile, NATO leaders were set to sign up a big increase in defence spending, with U.S. President Donald Trump striking a reassuring tone on his commitment to protecting fellow members of the alliance. German 10-year government bond yields, which serve as the benchmark for the wider euro zone, rose 0.5 basis points (bps) to 2.54%. Yields on 30-year German bonds were up one bp at 3.05%. They climbed 5 bps on Tuesday, after hitting 3.081%, their highest level in almost a month. Analysts expect rising bond supply across the euro area from more fiscal spending to drive long-term yields higher. Closely watched oil prices held near multi-week lows on the prospect that crude flows would not be disrupted, after a ceasefire between Iran and Israel. "Financial markets have priced in an Iran-Israel ceasefire holding," said Paul Donovan, chief economist at UBS Global Wealth Management. However, intelligence reports suggesting the U.S. failed to destroy Iran's nuclear program will probably keep tensions high in the region, he added. Trump said that the intelligence following the strikes on Iranian nuclear sites was inconclusive, but also suggested the damage could have been severe. Analysts argued that a spike in energy prices could lead markets to scale back their bets on central bank rate cuts. Money markets priced in a European Central Bank deposit facility rate at 1.75% in December, a level seen before the Israeli attack against Iran on June 13, after a rise up to 1.80% on Monday. A key market gauge of euro area long-term inflation expectations was last 2.12% from 2.08% on June 12. Benchmark 10-year Treasury yields were flat at 4.29% in London trade after dropping on Tuesday. Deutsche Bank flagged that since Thursday the market has priced roughly 10 bps more Fed rate cuts by year-end on the heels of dovish comments from Governors Christopher Waller and Michelle Bowman and Fed Chair Jerome Powell's testimony. A decline in risk appetite recently widened the yield spreads between government bonds of highly indebted countries and safe-haven German Bunds, before risk sentiment improved and spreads narrowed again on Tuesday. The Italian yield gap versus Bunds — a market gauge of the risk premium investors demand to hold Italian debt — was at 95 bps. It widened up to 104 bps last week, while being below 90 bps on June 12. Italy's 10-year yields rose 0.5 bps to 3.49%. The French gap versus Bunds was at 69 bps after reaching 75 bps last week. It was at 65 bps in early June. (Reporting by Stefano Rebaudo; Editing by Rachna Uppal, Bernadette Baum, Philippa Fletcher)
Yahoo
23-06-2025
- Business
- Yahoo
Euro Zone's Private Sector Near Stagnation on Uncertainty
(Bloomberg) -- The euro area's private sector barely grew in June, remaining in limbo as erratic US trade policy and geopolitical conflicts leave companies in the dark on what's next. Bezos Wedding Draws Protests, Soul-Searching Over Tourism in Venice One Architect's Quest to Save Mumbai's Heritage From Disappearing NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports The Composite Purchasing Managers' Index by S&P Global held at 50.2, remaining just above the 50 threshold separating growth from contraction, data Monday showed. Economists had anticipated an acceleration to 50.5. Services made it back to the vital 50 level as well, while manufacturing stayed at 49.4 — failing to grow for a 36th month. 'The euro-zone economy is struggling to gain momentum,' said Cyrus de la Rubia, an economist at Hamburg Commercial Bank. 'For six months now, growth has been minimal.' The data suggest economic output in the second quarter will be constrained. That would match the view of economists, who predicted in the latest Bloomberg survey that gross domestic product will stagnate in the three months through June — held back by massive uncertainty over US President Donald Trump's tariff push and wars in Ukraine and the Middle East. The survey was conducted June 12-19, before US strikes on Iran over the weekend. The final readings for the month will be published in the first week of July. National PMI numbers on Monday were mixed: While Germany unexpectedly returned to growth after just one month of contraction, France again stayed under the 50 threshold. It's been in that territory since September and de la Rubia highlighted that the euro area's second-biggest economy 'continues to drag its feet.' What Bloomberg Economics Says... 'The PMI survey for June suggests the euro-area economy is receiving a reprieve from the decline in trade uncertainty. However, that may not last – President Trump's pause in 'reciprocal tariffs' is scheduled to end on July 9. Bloomberg Economics expects the weight of US levies to still cause the ECB to lower rates again in September, although that's contingent on oil prices stabilizing.' —David Powell, senior euro-area economist. Click here for full REACT The European Central Bank expects the region to expand just 0.9% this year — even as inflation now seems to be tamed. That allowed the ECB cut for an eighth time this month, though a hold is now widely expected at the July meeting and some policymakers have suggested the easing cycle may be over. 'The ECB can remain relatively calm, as the strong euro and the deflationary effect of US tariffs argue against a short-term rise in inflation,' de la Rubia said. The PMI numbers come at the start of a big week in European politics, with heads of state and government first meeting in The Hague for their annual NATO summit and then in Brussels. The North Atlantic Treaty Organization is attempting to raise military spending goals, something that could help boost economic output across the region. PMIs are closely watched by markets as they arrive early in the month and are good at revealing trends and turning points in an economy. A measure of breadth of changes in output rather than depth, business surveys can sometimes be difficult to map directly to quarterly GDP. PMI data earlier Monday revealed continued expansion in Japan, India, Australia and the UK. US numbers are also expected to show a reading above 50. --With assistance from Harumi Ichikura, Joel Rinneby and Mark Evans. (Updates with Bloomberg Economics, UK PMI in final paragraph.) Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros The US Has More Copper Than China But No Way to Refine All of It Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
23-06-2025
- Business
- Bloomberg
Euro-Zone Private Sector Near Stagnation on Global Uncertainty
The euro area's private sector barely grew in June, remaining in limbo as erratic US trade policy and geopolitical conflicts leave companies in the dark on what's next. The Composite Purchasing Managers' Index by S&P Global held at 50.2, remaining just above the 50 threshold separating growth from contraction, data Monday showed. Economists had anticipated an acceleration to 50.5. Services made it back to the vital 50 level as well, while manufacturing stayed at 49.4 — failing to grow for a 36th month.
