While the government of French President Emmanuel Macron is looking to reduce spending over the coming years, the current plan isn’t expected to fall below the European Union limit of 3% of gross domestic product until 2027.

Still, the IMF’s chief economist believes that the French government is on the right track to reducing the deficit. “The budget path that the government is planning is going in the right direction,” Gourinchas said, going on to suggest that “it’s perhaps moving a little too slowly.” Given that it still appears to be too early to lower interest rates given the current state of the fight against inflation, the economist suggested that the government pursue other policies to bring about faster change.

The post France Unlikely To Reach Budget Deficit Target, IMF Claims appeared first on theprimarymarket.com.

This comes after marginally cooler eurozone inflation data was released on Monday, along with optimistic eurozone economic growth figures. “Markets are showing signs of summer liquidity as investors take a much-deserved break,” Mohit Kumar, chief financial economist of Europe at Jefferies observed.

Following a sharp rise in European interest rates over the past 12 months, European Central Bank (ECB) President Christine Lagarde indicated a possibility that the central bank may pause its rate hikes in September, thereby providing some relief to European bonds.

Manufacturing activity in July contracted at its fastest pace since the COVID pandemic, as was expected by analysts. This data, in contrast with positive inflation and economic growth data, has created a cloudy economic outlook for the eurozone.

The post Eurozone Bonds Hold Steady Amid Uncertain Economic Landscape appeared first on theprimarymarket.com.

ECB President Christine Lagarde appeared to confirm an interest rate hike when the central bank’s governing council meets in Frankfurt on Thursday, explaining “we cannot waver, and we cannot declare victory yet.”

With the ECB’s rate hiking agenda nearing its conclusion, analysts are now debating whether or not the central bank will raise rates yet again in September or if July will be its last increase.

Currently, euro zone inflation is standing at 5.5; down from the double-digit peak in October but still far off the ECB’s target of 2%. The ECB’s rate hikes in the fight against inflation are the fastest since the euro was introduced in 1999. The whole euro zone economy fell slightly during the first three months of the year. Preliminary figures for the second quarter are expected on Monday.

The post ECB Set to Raise Interest Rates as Hiking Agenda Nears End appeared first on theprimarymarket.com.

Data from Epex Spot SE on Saturday showed that energy prices are negative in nearly a dozen countries across the European continent, including Germany, France, the Netherlands, and the UK. Prices in the Netherlands are set to fall as low as -€73.76 per megawatt hour by Sunday afternoon.

Negative power prices are believed to be a result of a record number of solar panels being added to European homes last year, a move that helped to curb overinflated natural gas prices. For the first time this summer, the EU’s monthly solar power generation surpassed that of coal-powered electricity.

“Negative pricing is an important signal in the electricity system to incentivize flexibility and storage, which is critical to a modern-day electricity system,” Tom Haddon, a consultant at Arcadis LLP remarked. The influx of renewable energy consumption is helping to costs for grid operators while making it easier for them to keep the system in balance.

The post European Energy Prices to Plummet Amid Solar Boom appeared first on theprimarymarket.com.

The index, compiled by S&P Global, fell from 52.8 in May to 50.3 in June. This is slightly above the 50 mark that separates growth from contraction, thereby signaling a slowdown in economic growth across the region.

“After eurozone GDP fell for the second time in a row in the first quarter, the probability has increased somewhat that the GDP change will again carry a negative sign in the current quarter,” Cyrus de la Rubia, chief economist at Hamburg Commercial Bank explained.

The composite new business index fell from 50.3 to 48.3, signaling that overall consumer demand across the eurozone has dropped. The services industry index declined to 52.4 from 55.1. That fell below a Reuters poll expectation of 54.5.

Manufacturing activity was the worst-hit gauge of business growth being measured, falling from 44.8 to 43.6 to extend its decline since last July. This is the lowest level since May 2020, at the height of the COVID pandemic.

The post Eurozone Business Growth Comes to a Standstill in June appeared first on theprimarymarket.com.

“Travelers who haven’t booked their summer trips to Europe aren’t going to want to hear this… If you’re booking a European vacation now, you are definitely paying a premium for your procrastination,” Berg commented in an interview with Yahoo Finance Live.

Airfare from the U.S. to Europe costs $1,196 on average this summer, compared to just $500 in 2021. This is the highest average plane ticket price from the U.S. to Europe since 2018.

While London, Paris, and Rome remain popular travel destinations, Berg suggested that many tourists may decide to target alternative destinations for a more affordable vacation package. Berg mentioned Portugal as a personal favorite, explaining that the Iberian country is expected to remain cheaper than other European destinations over the next year and a half.

Berg added that in order to secure a reasonable vacation deal, travelers should consider embarking on their trip in early fall and planning three to four months in advance.

The post U.S. Travelers to Europe Expected to Pay a Premium, Economist Claims appeared first on theprimarymarket.com.

Both the U.S. and German 2-year bond yields were pushed higher, reaching 4.8% and 3.1% respectively. This is both yields’ highest levels since March.

Equities were also hampered, with blue chip stocks listed in London, Paris, and Frankfurt dipping by an average of 0.2%. In contrast, MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.7%; a two-month high.

In Asia, the Bank of Japan (BoJ) seems set to stick with its loose monetary policy when it reconvenes on Friday. The yen slumped to a six-month low on Thursday, dropping 1% to 141.50 per dollar.

“Dollar-yen is at year highs and markets are increasingly beginning to talk about whether a further rise could trigger the BoJ to verbally and also effectually intervene in the FX market,” Danske Bank’s head of FX research Kristoffer Kjær Lomholt remarked.

Brent oil remained steady at $73.29 per barrel, while gold slipped to a two-week low of $1,934 an ounce. The dollar rose slightly from its four-week low against a basket of other major world currencies.

The post Global Stocks Slip as ECB Prepares to Make Interest Rate Decision appeared first on theprimarymarket.com.

Eurozone gross domestic product (GDP) fell by 0.1% compared to the previous quarter, while it rose by 1.0% compared to the same time the previous year. The revision is primarily a result of a second estimate released by Germany’s statistics office showing that the country went into recession in early 2023. The revision also cut the euro zone’s fourth-quarter GDP growth to -0.1%.

In addition to Germany, it was also found that the GDP declined on a quarter-on-quarter basis in Greece, Ireland, Lithuania, Malta, and the Netherlands.

According to Eurostat, quarterly GDP was most heavily impacted by increased household spending, which shredded 0.1 percentage points, public expenditure, which caused a 0.3 percentage point hit, and inventory changes, dragging down GDP by 0.4 percentage points.

The post Euro Zone in Recession Following Downward Revision of Growth appeared first on theprimarymarket.com.

Germany’s 10-year bund yield, the eurozone benchmark, was flat at 2.37%, while the two-year yield was up two basis points at 2.91%. Italty’s 10-year yield edged higher by one basis point to 4.18%, while the two-year yield was up two basis points to 3.52%.

During what has been a quiet period leading up to the next policy meeting, ECB executive board member Isabel Schnabel told a Belgian newspaper, “Given the high uncertainty about the persistence of inflation, the costs of doing too little continue to be greater than the costs of doing too much.” Dutch central bank chief Klaas Knot appeared to back further rate hikes, claiming that although inflation has remained resilient, stricter monetary tightening has had an effect.

Four ECB policymakers are scheduled to make statements on Wednesday, thereby providing observers with more perspective on potential actions that the ECB could take with its interest rate policy going forward. Since the start of the inflation crisis last year, the ECB has raised interest rates by a combined 375 basis points.

The post Euro Zone Yields Hold Steady Following ECB Policymakers’ Comments appeared first on theprimarymarket.com.

Germany’s 10-year bond yield rose to 2.501%; its highest level since April 24. Italy’s 10-year bond yield increased by four basis points to 4.355%, rising to its highest level since March 9 when it stood at 4.376%. The gap between Germany’s and Italy’s 10-year bond yields rose to 186 bps.

Pooja Kumra, a European rates strategist at lender TD, observed that Wednesday’s bond yield increases were largely a reaction to the latest UK inflation data. “It’s a wake-up call for euro markets as well, that central banks are not done because inflation still needs to be tamed,” Kumra warned.

Aside from incoming UK inflation data, traders are also keeping an eye on the latest moves by the European Central Bank. Currently, they are betting on the ECB implementing another interest rate hike that will raise interest rates to 3.84%—the highest expected rate since April.

The post Euro Zone Bonds Hit One-Month High Amid Rising Bets on Rate Hikes appeared first on theprimarymarket.com.

While the government of French President Emmanuel Macron is looking to reduce spending over the coming years, the current plan isn’t expected to fall below the European Union limit of 3% of gross domestic product until 2027.

Still, the IMF’s chief economist believes that the French government is on the right track to reducing the deficit. “The budget path that the government is planning is going in the right direction,” Gourinchas said, going on to suggest that “it’s perhaps moving a little too slowly.” Given that it still appears to be too early to lower interest rates given the current state of the fight against inflation, the economist suggested that the government pursue other policies to bring about faster change.

The post France Unlikely To Reach Budget Deficit Target, IMF Claims appeared first on theprimarymarket.com.

This comes after marginally cooler eurozone inflation data was released on Monday, along with optimistic eurozone economic growth figures. “Markets are showing signs of summer liquidity as investors take a much-deserved break,” Mohit Kumar, chief financial economist of Europe at Jefferies observed.

Following a sharp rise in European interest rates over the past 12 months, European Central Bank (ECB) President Christine Lagarde indicated a possibility that the central bank may pause its rate hikes in September, thereby providing some relief to European bonds.

Manufacturing activity in July contracted at its fastest pace since the COVID pandemic, as was expected by analysts. This data, in contrast with positive inflation and economic growth data, has created a cloudy economic outlook for the eurozone.

The post Eurozone Bonds Hold Steady Amid Uncertain Economic Landscape appeared first on theprimarymarket.com.

ECB President Christine Lagarde appeared to confirm an interest rate hike when the central bank’s governing council meets in Frankfurt on Thursday, explaining “we cannot waver, and we cannot declare victory yet.”

With the ECB’s rate hiking agenda nearing its conclusion, analysts are now debating whether or not the central bank will raise rates yet again in September or if July will be its last increase.

Currently, euro zone inflation is standing at 5.5; down from the double-digit peak in October but still far off the ECB’s target of 2%. The ECB’s rate hikes in the fight against inflation are the fastest since the euro was introduced in 1999. The whole euro zone economy fell slightly during the first three months of the year. Preliminary figures for the second quarter are expected on Monday.

The post ECB Set to Raise Interest Rates as Hiking Agenda Nears End appeared first on theprimarymarket.com.

Data from Epex Spot SE on Saturday showed that energy prices are negative in nearly a dozen countries across the European continent, including Germany, France, the Netherlands, and the UK. Prices in the Netherlands are set to fall as low as -€73.76 per megawatt hour by Sunday afternoon.

Negative power prices are believed to be a result of a record number of solar panels being added to European homes last year, a move that helped to curb overinflated natural gas prices. For the first time this summer, the EU’s monthly solar power generation surpassed that of coal-powered electricity.

“Negative pricing is an important signal in the electricity system to incentivize flexibility and storage, which is critical to a modern-day electricity system,” Tom Haddon, a consultant at Arcadis LLP remarked. The influx of renewable energy consumption is helping to costs for grid operators while making it easier for them to keep the system in balance.

The post European Energy Prices to Plummet Amid Solar Boom appeared first on theprimarymarket.com.

The index, compiled by S&P Global, fell from 52.8 in May to 50.3 in June. This is slightly above the 50 mark that separates growth from contraction, thereby signaling a slowdown in economic growth across the region.

“After eurozone GDP fell for the second time in a row in the first quarter, the probability has increased somewhat that the GDP change will again carry a negative sign in the current quarter,” Cyrus de la Rubia, chief economist at Hamburg Commercial Bank explained.

The composite new business index fell from 50.3 to 48.3, signaling that overall consumer demand across the eurozone has dropped. The services industry index declined to 52.4 from 55.1. That fell below a Reuters poll expectation of 54.5.

Manufacturing activity was the worst-hit gauge of business growth being measured, falling from 44.8 to 43.6 to extend its decline since last July. This is the lowest level since May 2020, at the height of the COVID pandemic.

The post Eurozone Business Growth Comes to a Standstill in June appeared first on theprimarymarket.com.

“Travelers who haven’t booked their summer trips to Europe aren’t going to want to hear this… If you’re booking a European vacation now, you are definitely paying a premium for your procrastination,” Berg commented in an interview with Yahoo Finance Live.

Airfare from the U.S. to Europe costs $1,196 on average this summer, compared to just $500 in 2021. This is the highest average plane ticket price from the U.S. to Europe since 2018.

While London, Paris, and Rome remain popular travel destinations, Berg suggested that many tourists may decide to target alternative destinations for a more affordable vacation package. Berg mentioned Portugal as a personal favorite, explaining that the Iberian country is expected to remain cheaper than other European destinations over the next year and a half.

Berg added that in order to secure a reasonable vacation deal, travelers should consider embarking on their trip in early fall and planning three to four months in advance.

The post U.S. Travelers to Europe Expected to Pay a Premium, Economist Claims appeared first on theprimarymarket.com.

Both the U.S. and German 2-year bond yields were pushed higher, reaching 4.8% and 3.1% respectively. This is both yields’ highest levels since March.

Equities were also hampered, with blue chip stocks listed in London, Paris, and Frankfurt dipping by an average of 0.2%. In contrast, MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.7%; a two-month high.

In Asia, the Bank of Japan (BoJ) seems set to stick with its loose monetary policy when it reconvenes on Friday. The yen slumped to a six-month low on Thursday, dropping 1% to 141.50 per dollar.

“Dollar-yen is at year highs and markets are increasingly beginning to talk about whether a further rise could trigger the BoJ to verbally and also effectually intervene in the FX market,” Danske Bank’s head of FX research Kristoffer Kjær Lomholt remarked.

Brent oil remained steady at $73.29 per barrel, while gold slipped to a two-week low of $1,934 an ounce. The dollar rose slightly from its four-week low against a basket of other major world currencies.

The post Global Stocks Slip as ECB Prepares to Make Interest Rate Decision appeared first on theprimarymarket.com.

Eurozone gross domestic product (GDP) fell by 0.1% compared to the previous quarter, while it rose by 1.0% compared to the same time the previous year. The revision is primarily a result of a second estimate released by Germany’s statistics office showing that the country went into recession in early 2023. The revision also cut the euro zone’s fourth-quarter GDP growth to -0.1%.

In addition to Germany, it was also found that the GDP declined on a quarter-on-quarter basis in Greece, Ireland, Lithuania, Malta, and the Netherlands.

According to Eurostat, quarterly GDP was most heavily impacted by increased household spending, which shredded 0.1 percentage points, public expenditure, which caused a 0.3 percentage point hit, and inventory changes, dragging down GDP by 0.4 percentage points.

The post Euro Zone in Recession Following Downward Revision of Growth appeared first on theprimarymarket.com.

Germany’s 10-year bund yield, the eurozone benchmark, was flat at 2.37%, while the two-year yield was up two basis points at 2.91%. Italty’s 10-year yield edged higher by one basis point to 4.18%, while the two-year yield was up two basis points to 3.52%.

During what has been a quiet period leading up to the next policy meeting, ECB executive board member Isabel Schnabel told a Belgian newspaper, “Given the high uncertainty about the persistence of inflation, the costs of doing too little continue to be greater than the costs of doing too much.” Dutch central bank chief Klaas Knot appeared to back further rate hikes, claiming that although inflation has remained resilient, stricter monetary tightening has had an effect.

Four ECB policymakers are scheduled to make statements on Wednesday, thereby providing observers with more perspective on potential actions that the ECB could take with its interest rate policy going forward. Since the start of the inflation crisis last year, the ECB has raised interest rates by a combined 375 basis points.

The post Euro Zone Yields Hold Steady Following ECB Policymakers’ Comments appeared first on theprimarymarket.com.

Germany’s 10-year bond yield rose to 2.501%; its highest level since April 24. Italy’s 10-year bond yield increased by four basis points to 4.355%, rising to its highest level since March 9 when it stood at 4.376%. The gap between Germany’s and Italy’s 10-year bond yields rose to 186 bps.

Pooja Kumra, a European rates strategist at lender TD, observed that Wednesday’s bond yield increases were largely a reaction to the latest UK inflation data. “It’s a wake-up call for euro markets as well, that central banks are not done because inflation still needs to be tamed,” Kumra warned.

Aside from incoming UK inflation data, traders are also keeping an eye on the latest moves by the European Central Bank. Currently, they are betting on the ECB implementing another interest rate hike that will raise interest rates to 3.84%—the highest expected rate since April.

The post Euro Zone Bonds Hit One-Month High Amid Rising Bets on Rate Hikes appeared first on theprimarymarket.com.