Latest news with #EuroSTOXX50
Euronews
07-07-2025
- Business
- Euronews
European spending drops as trade tensions hit consumer wallets
Retail sales in the eurozone fell at their steepest monthly rate in nearly two years in May, as growing uncertainty over US trade tariffs weighed on consumer sentiment and curbed spending. According to first estimates released by Eurostat on Monday, the seasonally adjusted volume of retail trade decreased by 0.7% in the eurozone and by 0.8% across the EU in May, compared to April. The decline aligns with economists' forecasts but marks the sharpest drop since August 2023. The setback follows a modest rebound in April, when sales rose by 0.3% in the eurozone and by 0.8% in the wider European Union. On an annual basis, eurozone retail sales growth slowed from 2.7% in April to just 1.8% in May — the weakest expansion since July 2024. Sector breakdown and national trends Across the eurozone, all major retail sectors experienced contraction. Sales of food, drinks and tobacco fell by 0.7%, while non-food products — excluding automotive fuel — declined by 0.6%. Automotive fuel sales dropped the most, falling by 1.3% in specialised stores. In the broader EU, the declines were similarly spread, with food and beverage sales down 0.8%, non-food products dropping by 0.7%, and automotive fuel dipping 1.2%. Among EU member states, the most severe monthly contractions were seen in Sweden (-4.6%), Belgium (-2.5%) and Estonia (-2.2%). Meanwhile, Portugal (+2.1%), Bulgaria (+2.0%) and Cyprus (+1.0%) posted the strongest increases. Markets stay cautious as investors watch US trade moves European equity markets remained largely flat on Monday. The blue-chip Euro STOXX 50 hovered near 5,300 points, while the broader STOXX 600 was unchanged at 541, as investors awaited clarity on the direction of US trade policy. The euro edged down 0.3% to $1.1730, while yields on 10-year German Bunds held steady at around 2.57%. President Donald Trump is expected to issue a new wave of tariff warning letters later on Monday, targeting countries with trade surpluses with the United States. While the list of recipients remains undisclosed, Commerce Secretary Howard Lutnick confirmed that the "Liberation Day" tariff package originally scheduled for 9 July would now take effect on 1 August. Trump's administration had previously imposed a 20% import tax on EU-manufactured goods in April, but quickly reduced the rate to 10% as financial markets plummeted. However, a separate deadline to reach an agreement with the European Union before tariffs rise as high as 50% has now been set for Wednesday. So far, only China, the United Kingdom and Vietnam have managed to secure temporary exemptions through deals with Washington. Trump has warned that any country aligning with the 'anti-American policies' of the BRICS bloc will face an additional 10% tariff — with no exceptions.
Yahoo
01-07-2025
- Business
- Yahoo
Eurozone inflation falls below ECB 2% target in May: Rate cut in sight
Inflation in the euro area cooled more than expected in May, bolstering expectations that the European Central Bank (ECB) will announce another interest rate cut at its meeting on Thursday. Annual consumer price growth slowed to 1.9% in May, down from 2.2% in April, according to a flash estimate from Eurostat. The figure came in below economists' forecast of 2%, and marks the first time inflation has dipped below the ECB's 2% target since September 2024. The decline in headline inflation suggests that business uncertainty, partly driven by renewed global trade tensions and soft consumer demand, is weighing on pricing power across sectors. Core inflation, which strips out volatile food and energy prices, also showed signs of easing. It slowed to 2.4% in May, from 2.7% in April, falling below expectations of 2.5%. On a monthly basis, core prices rose by just 0.1%. Among the main inflation components, food, alcohol and tobacco remained the strongest driver, rising 3.3% year-on-year, up from 3.0% in April. Services inflation, which had been particularly resilient, dropped sharply from 4.0% to 3.2%, contributing significantly to the broader deceleration. Non-energy industrial goods recorded a stable 0.6% annual increase, while energy prices continued their downward trajectory, declining by 3.6% compared to a year ago. On a monthly basis, overall inflation was flat, after a 0.6% rise in April, signalling a clear slowdown in momentum. The highest annual rates were recorded in Estonia (4.6%), Slovakia and Croatia (both 4.3%). France registered the lowest inflation, at just 0.6%, suggesting a stark divergence in price pressures among euro area members. Monthly inflation was highest in Portugal and Croatia, where prices rose 0.7% and 0.6%, respectively. By contrast, deflationary readings were observed in Belgium, Spain, France, Lithuania, the Netherlands, Austria and Slovenia. In a separate release, Eurostat reported that the euro area unemployment rate fell to 6.2% in May, down from 6.3% in March and 6.4% a year earlier. Market bets on ECB easing The euro lost ground against the dollar following the inflation print, dropping to $1.1400 as investors moved to fully price in a 25-basis-point cut to the ECB's deposit facility rate on Thursday. The cut would bring the deposit facility rate to 2.0%, its lowest level since January 2023. Eurozone sovereign bonds remained broadly. The yield on Germany's two-year bond, which is sensitive to ECB policy moves, traded at 1.77%. European equities edged lower on Tuesday morning, with the Euro STOXX 50 down 0.8%, after the OECD cut its global growth outlook, pointing to a slowdown fuelled by rising trade tensions. Orange, Société Générale and LVMH led losses, falling 3%, 1.9% and 1.6%, respectively. Deutsche Telekom gained 2%, emerging as the top performer among eurozone blue-chip stocks. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-06-2025
- Business
- Yahoo
Israel launches major strike on Iran: What is the market fallout?
European equities tumbled when the market opened on Friday and oil prices surged, as investors reacted to Israel's large-scale air strikes on Iran's nuclear infrastructure, fuelling fears of a broader Middle East conflict. The operation, named Rising Lion, marks the most extensive Israeli military action on Iranian soil to date, targeting over 100 facilities including the Natanz complex and missile sites near Tehran. As of 9.15am CEST, the Euro STOXX 50 had dropped 1.5%, extending weekly losses to 2.7% — the worst performance since early April. Financials led the downturn among Eurozone blue chips. Deutsche Bank fell 2.73%, UniCredit 2.56%, Banco Bilbao Vizcaya Argentaria 2.48% and Banco Santander 2.46%. Germany's DAX lost 1.34% to 23,453, France's CAC 40 dropped 1.35% to 7,660, Italy's FTSE MIB retreated 1.68% to 39,271, and Spain's IBEX 35 fell 1.70% to 13,849. Related Oil under pressure as OPEC+ weighs further output hike ahead of US-Iran talks Israel and Iran descend into conflict as Tehran vows revenge to Israeli strikes: Live updates Oil prices surged following the Israeli strike, as markets began to price in a higher geopolitical risk premium. Brent crude jumped over 5% to trade at $73 (€68) per barrel, while West Texas Intermediate rose to $71.5 (€66.60). For the week, oil prices are up more than 10%, on track for the strongest weekly gain since October 2022. As energy prices rallied, oil majors such as Italy's Eni and Spain's Repsol gained 2%. German defence powerhouse Rheinmetall also rose 2% as investors turned to military and security-exposed stocks. Dutch TTF natural gas futures climbed 2% to €37.12 per megawatt hour, amid concerns over potential disruptions to energy flows. The Israeli campaign involved over 200 fighter jets, according to the IDF, and reportedly resulted in the death of senior Islamic Revolutionary Guard Corps commanders Hossein Salami and Mohammad Bagheri. Demand for safe-haven assets surged. Gold rose 1% to $3,430 (€3,200) per ounce, nearing its all-time high of $3,500. Silver also held ground, hitting $36.5 per ounce overnight. The dollar gained strength following days of steady declines. The euro fell 0.5% to $1.1540 after touching a three-year high of 1.16 on Thursday. On the data front, Germany's final inflation reading for May was confirmed at 2.1% year-over-year. Spain's annual inflation was upwardly revised from 1.9% to 2%. The pound also slipped 0.5% to $1.1350. The Israeli shekel tumbled 1.8% against the dollar, heading for its steepest daily loss since the Hamas attack of October 2023. 'The Israeli strike on Iran's nuclear facilities has sent oil prices spiking and has offered the oversold and undervalued dollar a catalyst for a rebound,' said Francesco Pesole, currency strategist at ING. While there are currently no confirmed disruptions to oil production, analysts warn that the situation could escalate rapidly. 'The key difference from previous standoffs is that nuclear facilities have now been targeted,' Pesole added. Warren Patterson, head of commodities research at ING, noted: 'In a scenario where we see continued escalation, there's the potential for disruptions to shipping through the Strait of Hormuz. Almost a third of global seaborne oil trade moves through that route.' He warned that up to 14 million barrels per day could be at risk, with oil potentially surging to $120 per barrel in the event of a prolonged disruption — levels not seen since 2008. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Euronews
13-06-2025
- Business
- Euronews
Israel launches major strike on Iran: What is the market fallout?
European equities tumbled when the market opened on Friday and oil prices surged, as investors reacted to Israel's large-scale air strikes on Iran's nuclear infrastructure, fuelling fears of a broader Middle East conflict. The operation, named Rising Lion, marks the most extensive Israeli military action on Iranian soil to date, targeting over 100 facilities including the Natanz complex and missile sites near Tehran. As of 9.15am CEST, the Euro STOXX 50 had dropped 1.5%, extending weekly losses to 2.7% — the worst performance since early April. Financials led the downturn among Eurozone blue chips. Deutsche Bank fell 2.73%, UniCredit 2.56%, Banco Bilbao Vizcaya Argentaria 2.48% and Banco Santander 2.46%. Germany's DAX lost 1.34% to 23,453, France's CAC 40 dropped 1.35% to 7,660, Italy's FTSE MIB retreated 1.68% to 39,271, and Spain's IBEX 35 fell 1.70% to 13,849. Oil prices surged following the Israeli strike, as markets began to price in a higher geopolitical risk premium. Brent crude jumped over 5% to trade at $73 (€68) per barrel, while West Texas Intermediate rose to $71.5 (€66.60). For the week, oil prices are up more than 10%, on track for the strongest weekly gain since October 2022. As energy prices rallied, oil majors such as Italy's Eni and Spain's Repsol gained 2%. German defence powerhouse Rheinmetall also rose 2% as investors turned to military and security-exposed stocks. Dutch TTF natural gas futures climbed 2% to €37.12 per megawatt hour, amid concerns over potential disruptions to energy flows. The Israeli campaign involved over 200 fighter jets, according to the IDF, and reportedly resulted in the death of senior Islamic Revolutionary Guard Corps commanders Hossein Salami and Mohammad Bagheri. Demand for safe-haven assets surged. Gold rose 1% to $3,430 (€3,200) per ounce, nearing its all-time high of $3,500. Silver also held ground, hitting $36.5 per ounce overnight. The dollar gained strength following days of steady declines. The euro fell 0.5% to $1.1540 after touching a three-year high of 1.16 on Thursday. On the data front, Germany's final inflation reading for May was confirmed at 2.1% year-over-year. Spain's annual inflation was upwardly revised from 1.9% to 2%. The pound also slipped 0.5% to $1.1350. The Israeli shekel tumbled 1.8% against the dollar, heading for its steepest daily loss since the Hamas attack of October 2023. 'The Israeli strike on Iran's nuclear facilities has sent oil prices spiking and has offered the oversold and undervalued dollar a catalyst for a rebound,' said Francesco Pesole, currency strategist at ING. While there are currently no confirmed disruptions to oil production, analysts warn that the situation could escalate rapidly. 'The key difference from previous standoffs is that nuclear facilities have now been targeted,' Pesole added. Warren Patterson, head of commodities research at ING, noted: 'In a scenario where we see continued escalation, there's the potential for disruptions to shipping through the Strait of Hormuz. Almost a third of global seaborne oil trade moves through that route.' He warned that up to 14 million barrels per day could be at risk, with oil potentially surging to $120 per barrel in the event of a prolonged disruption — levels not seen since 2008. European indexes took a hit on Friday, following a dip in Asian markets, on news that Israel had attacked Iran's capital. The strikes came amid the ramping up of tensions over Tehran's rapidly advancing nuclear program. Oil prices, on the other hand, soared — linked to concerns that the conflict could restrict supply. US benchmark crude oil had risen 5.3% to around $71.7 per barrel as of 9.30 CEST. Brent crude, the international standard, increased by 5.15% to $72.93 per barrel. In share trading, the EURO STOXX 50 fell 1.37% to 5.287,11, while the broader STOXX 600 fell 0.95% 544,64. Germany's DAX dropped 1.3% to 23.463,56 and Italy's FTSE MIB slipped 1.53% to 39,315.48. Spain's IBEX 35 fell 1.56% to 13,869.00 and France's CAC 40 dropped 1.03% to 7,682.33. In Asian, Tokyo's Nikkei 225 fell 0.89% to 37,834.25 at close, while the Kospi in Seoul edged 0.87% lower to 2,894.62. Hong Kong's Hang Seng retreated 0.91% to 23.817,36 and the Shanghai Composite Index lost 0.75% to 3,377.00. Australia's S&P/ASX 200 drifted 0.21% lower to 8.547,40. An Israeli attack on Iran is in "our top ten of global risks', but 'Asian markets are expected to recover quickly as they have relatively limited exposure to the conflict and growing ties to unaffected Saudi Arabia and the UAE', said Xu Tiachen of The Economist Intelligence. Following the strikes on Iran, S&P 500 futures dropped 1.38%, Nasdaq 100 futures fell 1.46%% and Dow Jones Industrial Average futures fell 1.29% by around 3.45am ET. On Thursday, US stock indexes had ticked higher following another encouraging update on inflation across the country. The S&P 500 rose 0.4% to 6,045.26. The Dow Jones Industrial Average added 0.2% to 42,967.62, and the Nasdaq Composite gained 0.2% to 19,662.48. Oracle pushed upward on the market after jumping 13.3%. The tech giant delivered stronger profit and revenue for the latest quarter than analysts expected, and CEO Safra Catz said it expects revenue growth 'will be dramatically higher' in its upcoming fiscal year. That helped offset a 4.8% loss for Boeing after Air India said a London-bound flight crashed shortly after taking off from Ahmedabad airport on Thursday with 242 passengers and crew onboard. The Boeing 787 Dreamliner crashed into a residential area near the airport five minutes after taking off. Stocks broadly got some help from easing Treasury yields in the bond market following the latest update on inflation. Thursday's update said inflation at the wholesale level wasn't as bad last month as economists expected. Wall Street took it as a signal that the Federal Reserve will have more leeway to cut interest rates later this year in order to give the economy a boost. The Fed's next meeting on interest rates is scheduled for next week, but the nearly unanimous expectation on Wall Street is that officials won't cut.
Yahoo
05-06-2025
- Business
- Yahoo
Eurozone inflation falls below ECB 2% target in May: Rate cut in sight
Inflation in the euro area cooled more than expected in May, bolstering expectations that the European Central Bank (ECB) will announce another interest rate cut at its meeting on Thursday. Annual consumer price growth slowed to 1.9% in May, down from 2.2% in April, according to a flash estimate from Eurostat. The figure came in below economists' forecast of 2%, and marks the first time inflation has dipped below the ECB's 2% target since September 2024. The decline in headline inflation suggests that business uncertainty, partly driven by renewed global trade tensions and soft consumer demand, is weighing on pricing power across sectors. Core inflation, which strips out volatile food and energy prices, also showed signs of easing. It slowed to 2.4% in May, from 2.7% in April, falling below expectations of 2.5%. On a monthly basis, core prices rose by just 0.1%. Among the main inflation components, food, alcohol and tobacco remained the strongest driver, rising 3.3% year-on-year, up from 3.0% in April. Services inflation, which had been particularly resilient, dropped sharply from 4.0% to 3.2%, contributing significantly to the broader deceleration. Non-energy industrial goods recorded a stable 0.6% annual increase, while energy prices continued their downward trajectory, declining by 3.6% compared to a year ago. On a monthly basis, overall inflation was flat, after a 0.6% rise in April, signalling a clear slowdown in momentum. The highest annual rates were recorded in Estonia (4.6%), Slovakia and Croatia (both 4.3%). France registered the lowest inflation, at just 0.6%, suggesting a stark divergence in price pressures among euro area members. Monthly inflation was highest in Portugal and Croatia, where prices rose 0.7% and 0.6%, respectively. By contrast, deflationary readings were observed in Belgium, Spain, France, Lithuania, the Netherlands, Austria and Slovenia. In a separate release, Eurostat reported that the euro area unemployment rate fell to 6.2% in May, down from 6.3% in March and 6.4% a year earlier. Market bets on ECB easing The euro lost ground against the dollar following the inflation print, dropping to $1.1400 as investors moved to fully price in a 25-basis-point cut to the ECB's deposit facility rate on Thursday. The cut would bring the deposit facility rate to 2.0%, its lowest level since January 2023. Eurozone sovereign bonds remained broadly. The yield on Germany's two-year bond, which is sensitive to ECB policy moves, traded at 1.77%. European equities edged lower on Tuesday morning, with the Euro STOXX 50 down 0.8%, after the OECD cut its global growth outlook, pointing to a slowdown fuelled by rising trade tensions. Orange, Société Générale and LVMH led losses, falling 3%, 1.9% and 1.6%, respectively. Deutsche Telekom gained 2%, emerging as the top performer among eurozone blue-chip stocks. Error in retrieving data Sign in to access your portfolio Error in retrieving data
