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Spain’s trade balance for September came in at –€6.00B, unchanged from the prior figure, reflecting continued import-export imbalances amid soft external demand.

In the government bond market, yields moved higher across long-term maturities. The 30-year Obligacion auction cleared at 4.038%, slightly below the previous 4.074%, while the 10-year yield rose to 3.199% from 3.111%. The 7-year auction also saw yields climb to 2.885%, up from 2.716%, signaling stronger risk premiums amid shifting European rate expectations.

Market impact: Mildly negative for EUR; steady trade deficit and higher bond yields reflect ongoing fiscal and external pressures.

Germany’s PPI edged up 0.1% MoM in October, slightly above expectations of 0.0% and reversing the prior -0.1% dip. On an annual basis, producer prices fell 1.8% YoY, a modest improvement from the previous -1.9%, though still indicating ongoing disinflation in producer-level costs.

The data suggests that while price pressures remain subdued in Germany’s industrial sector, the pace of decline is starting to moderate.

Market impact: Neutral for EUR; stable PPI signals contained upstream inflation but offers no major shift in outlook.

Switzerland recorded a trade surplus of CHF 4.319B in October, slightly below expectations of CHF 4.760B and down from the prior CHF 3.990B. The moderation reflects softer export momentum relative to imports, although the overall surplus remains solid.

Market impact: Neutral for CHF; a stable but slightly weaker surplus offers limited directional signals.

Eurozone labor costs rose 3.5% YoY in the third quarter, easing from 3.6% previously. The slight moderation points to stabilizing wage pressures across the bloc, helping reinforce the broader disinflation trend as the European Central Bank monitors labor-driven inflation closely.

Market impact: Neutral for EUR; softer wage growth aligns with easing inflation dynamics.

Eurozone inflation remained largely unchanged in October, reinforcing the view that price pressures continue to gradually normalize. Core CPI came in at 2.4% YoY, matching expectations and unchanged from the prior reading, while rising 0.3% MoM, in line with forecasts and above the previous 0.1%.

Headline CPI eased slightly to 2.1% YoY, down from 2.2%, while monthly CPI rose 0.2%, consistent with expectations. CPI excluding tobacco increased 0.2% MoM and slowed to 2.1% YoY from 2.2%, continuing the cooling trend.

The HICP measure excluding energy and food stood at 2.4% YoY and 0.2% MoM, unchanged from expectations—showing stable underlying price dynamics. Overall, the data support the outlook for steadily easing inflation across the Eurozone.

Market impact: Neutral for EUR; steady inflation reinforces expectations of a cautious but patient ECB.

The Eurozone’s current account surplus widened in September, rising to €23.1B, above expectations of €15.9B and slightly higher than the previous €22.2B. On a non-seasonally adjusted basis, the surplus jumped to €38.1B, compared with €22.3B earlier. The improvement reflects strong goods exports and a solid services balance, helping reinforce the region’s external position despite sluggish domestic growth.

Market impact: Mildly positive for EUR; a stronger external surplus supports underlying currency fundamentals.

France’s Treasury auctions showed little movement in short-term borrowing costs on Monday. The 12-month BTF yield edged higher to 2.084% from 2.065%, while the 3-month yield dipped slightly to 2.027% from 2.030%. The 6-month BTF also eased marginally to 2.041%, down from 2.044%. The results indicate broadly stable demand for French short-term debt amid steady eurozone rate expectations.

Market impact: Neutral for EUR; stable yields reflect balanced investor demand and unchanged monetary policy outlook.

Germany’s latest 12-month Bubill auction saw yields edge higher to 1.937%, up from 1.870% previously. The increase reflects firm demand for short-term safe-haven assets amid persistent uncertainty in European bond markets and shifting expectations around ECB policy.

Market impact: Slightly supportive for EUR rates; higher short-term yields signal steady demand for German debt.

Italy’s inflation eased further in October, with headline CPI falling 0.3% MoM, matching expectations and extending the prior -0.3% drop. Annual CPI slowed to 1.2%, in line with forecasts and down from 1.6% previously.

Core inflation (CPI excluding tobacco) also cooled, rising 1.1% YoY, compared with 1.4% before. The EU-harmonized HICP index declined 0.2% MoM, while annual HICP came in at 1.3%, down from 1.8% in the prior reading.

The data highlights easing price pressures across Italy, driven by softer energy and goods inflation, supporting expectations that overall Eurozone inflation will continue to moderate.

Market impact: Mildly negative for EUR; cooling inflation reinforces the case for an extended period of accommodative policy.

Switzerland’s economy weakened in the third quarter, with GDP falling 0.5% QoQ, reversing the 0.1% expansion previously. Despite the contraction, industrial production grew 2.4% YoY, improving from 2.1%, indicating that manufacturing remains a relative bright spot even as broader economic activity softens.

Market impact: Mildly negative for CHF; weaker GDP reinforces expectations of subdued economic momentum.

Eurozone reserve assets increased to €1,709.78 billion in October, up from €1,622.22 billion previously. The rise reflects stronger external buffers supported by valuation gains and steady inflows, signaling improved financial resilience for the region.

Market impact: Mildly positive for EUR; higher reserve assets strengthen external stability and support confidence in the Eurozone’s financial position.

The Eurozone economy expanded 0.2% quarter-on-quarter in Q3, matching expectations and improving from the 0.1% recorded previously. On a yearly basis, GDP rose 1.4%, slightly above forecasts of 1.3%, supported by modest improvements in services and exports.

Eurozone trade performance strengthened sharply in September, with the trade surplus widening to €19.4 billion, up from €1.9B previously, reflecting lower energy imports and stronger external demand.

Market impact: Mildly positive for EUR; steady GDP growth and a sharply higher trade surplus provide some support, though overall momentum remains fragile.