Piero Cingari
Economy
Eurozone private sector slips into contraction as services falter
Eurozone private sector contracted in May, with Composite PMI falling to 49.5. Services saw their sharpest drop in 16 months, while manufacturing stabilised. Business confidence hit a 19-month low, reinforcing expectations for further ECB rate cuts.
Economy
German economic sentiment rebounds in May as tariff fears ease
Germany’s economic sentiment rebounded to 25.2 in May, surpassing forecasts amid easing trade tensions and political stability. Eurozone sentiment also improved. Despite weak current conditions, optimism grows across key sectors.
Markets
German stocks drop as Merz stumbles in historic Bundestag defeat
German stocks fell and bund yields rose after Friedrich Merz failed to secure a Bundestag majority, marking a historic political setback. The DAX dropped 1.5%, with industrial stocks hit amid rising uncertainty over Germany’s economy.