Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
The euro zone economy showed little to no growth for the second consecutive month in June, as activity in both the services and manufacturing sectors remained subdued, according to a survey released Monday. HCOB’s flash composite Purchasing Managers’ Index (PMI), compiled by S&P Global, held steady at 50.2—the same as May—barely above the 50 threshold that separates growth from contraction and below the Reuters forecast of 50.5.
Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, noted, “The euro zone economy is struggling to gain momentum. Growth has been minimal for six months, with services stagnating and manufacturing only slightly improving.” While Germany showed signs of cautious recovery, France continued to lag behind.
New business activity declined for the 13th straight month, though the drop was modest. The new business index edged up to 49.7 from 49.0 in May. The services PMI ticked up to 50.0, meeting expectations and signaling stabilization. Optimism among services firms improved, with the business expectations index jumping to 57.9, the highest in four months.
However, manufacturing continued to underperform. The sector’s headline PMI stayed at 49.4, below expectations of 49.8, marking a persistent downturn since mid-2022. The output subindex, which feeds into the composite PMI, slipped to 51.0 from 51.5. Factories also lowered their selling prices for a second consecutive month, with the output prices index unchanged at 49.2.
Euro zone inflation dipped below the European Central Bank’s 2% target in May. Despite a recent rate cut, ECB policymakers, including Bundesbank President Joachim Nagel, signaled that further monetary easing may be on hold as they remain focused on anchoring inflation.
