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France’s CPI held at 1.0% YoY in July, matching expectations and June’s rate. On a monthly basis, prices rose 0.2%, easing from 0.4%. The EU-harmonised index (HICP) was 0.9% YoY and 0.3% MoM (both steady to softer vs prior 0.9%/0.4%). Inflation excluding tobacco also printed 0.9% YoY, underscoring broadly subdued price pressures into summer.

What it is:

CPI/HICP tracks consumer price changes domestically and on an EU-comparable basis, key gauges for purchasing power and policy.

Possible effect:

With headline and core-proxied measures tame, household real incomes get modest support. The benign profile may keep French OAT yields contained and aligns with a cautious-easing bias at the euro-area level, while policymakers watch for autumn energy and food base effects.

Germany’s CPI rose 0.3% MoM in July, keeping the YoY rate at 2.0% in line with expectations. The EU-harmonised HICP increased 0.4% MoM but eased to 1.8% YoY (from 2.0%), pointing to further disinflation even as monthly momentum picked up from June (CPI MoM 0.0%, HICP MoM 0.1%). Services and seasonal travel kept price pressure alive, while base effects in energy helped cap annual rates.

Germany’s ZEW Economic Sentiment Index dropped to 34.7 in August from 52.7 in July, well below expectations of 39.5, signaling weaker optimism about the economic outlook. The Current Conditions Index also fell to -68.6 (prev: --59.5), marking deeper pessimism about the present situation. For the broader Eurozone, the ZEW Economic Sentiment declined to 25.1 from 36.1, missing forecasts of 28.1.

France’s unemployment rate remained unchanged at 7.5% in the second quarter, matching both market expectations and the previous quarter’s level. The stability suggests a relatively resilient labor market despite signs of slower economic activity in the Eurozone.

Possible effect: A steady jobless rate may give policymakers room to focus on growth-supportive measures without immediate labor market concerns.

Swiss consumer confidence rebounded in the third quarter, with the SECO Consumer Climate index rising to –28, better than the –30 forecast and significantly above –39 in Q2. The improvement reflects households’ more optimistic views on the economic outlook, job security, and savings prospects amid easing inflation.

What it is:

The SECO Consumer Climate index measures Swiss households’ expectations on economic conditions, unemployment,t and personal finances on a scale where negative readings indicate pessimism.

Possible effect:

Stronger sentiment may translate into higher consumer spending, supporting retail sales and GDP growth. The uptick could also reinforce the Swiss National Bank’s cautious stance, delaying further policy changes as it balances stable demand with price stability.

UBS Group reported second-quarter earnings per share of CHF 0.72, surpassing the CHF 0.62 consensus, while revenues climbed to CHF 12.1 billion, above the CHF 11.49 billion forecast. The beat was driven by strong net fee income in Wealth Management and capital-markets activity, alongside disciplined cost controls that lifted the cost/income ratio to its best level in over three years. Group profit jumped, and the Tier 1 capital ratio rose to a robust level, underpinning balance-sheet strength. UBS’s market capitalization stands around CHF 124.8 billion, reflecting investor confidence in its diversified model. The results reinforce the bank’s strategy to focus on high-margin businesses and may support its stock ahead of regulatory reviews and seasonal dividend discussions.

Airbus Group reported earnings per share of €0.4238 under its ADR ticker (versus €0.4064 expected), while revenue slipped to €18.39 billion, down from €19.06 billion a year earlier. Improved profitability was driven by cost controls and strong delivery volumes for commercial aircraft, even as supply-chain bottlenecks weighed on overall sales. The company raised its annual delivery guidance, citing robust demand for its A320 family and wide-body jets despite slower defense and helicopter segments. Airbus’s market capitalization stands near €164.9 billion, reflecting investor confidence in its ability to navigate production challenges. While order backlogs remain healthy, management warned that materials shortages and inflationary pressures could temper momentum in the second half of the year.

Switzerland’s foreign exchange reserves rose to $716.44 billion in July, up from $713.10 billion in June, bolstered by valuation gains and modest intervention. Meanwhile, the jobless rate fell to 2.7% (non-seasonally adjusted) from 2.9%, while the seasonally adjusted rate held at 2.9%. The slight uptick in reserves underscores Switzerland’s continued ability to defend the franc amid global volatility, and the low unemployment reading reflects a tight labour market. Together, the data suggest the Swiss National Bank may maintain its careful policy stance, balancing currency stability with ongoing support for growth and employment.

Germany’s industrial production sank 1.9% month-on-month in June, far exceeding forecasts for a 0.4% drop and following a mild 0.1% decline in May. On a year-on-year basis, output contracted 0.6%, reversing from a 1.2% gain a year earlier. The sharp fall reflected broad-based weakness: automotive factories cut back on car production, machinery orders stalled, and energy-intensive sectors trimmed output. The drop highlights the challenge facing Europe’s largest economy as global demand cools and supply-chain disruptions persist. With manufacturing accounting for roughly one-fifth of GDP, the downturn may weigh on Q3 growth and reinforce calls for policy measures to support investment and ease business costs.

Germany’s trade surplus dropped to €14.9 billion in June, down from €18.6 billion in May and below the €17.8 billion forecast. Exports rose 0.8% month-on-month, rebounding from a 1.4% May decline and beating expectations, driven by strong machinery and auto shipments to Asia. Imports jumped 4.2%, reversing a 3.9% May slump and far exceeding the 1.0% forecast, as domestic demand for energy products and consumer goods picked up. The narrower surplus reflects resilient home-market activity amid cooling external demand. With net exports subtracting less from GDP, growth may get a modest boost, while heavier import volumes could weigh on the euro. Policymakers will watch incoming data for signs of a sustained turn in trade dynamics.

Eurozone retail sales rose 0.3% month-on-month in June, rebounding from a 0.3% drop in May and narrowly missing the 0.4% forecast. On a year-over-year basis, sales climbed 3.1%, up from 1.9% in June last year and beating the 2.6% estimate. Stronger spending on food and non-durable goods, along with early summer promotions, helped lift the headline figures. The retail sales index measures changes in household outlays at shops and online, a key gauge of consumer confidence and domestic demand. June’s improvement suggests consumers are regaining confidence and could support broader economic growth, even as inflation remains above target. Continued momentum in retail may ease concerns over slowing consumption and bolster the eurozone’s recovery.

Italy’s industrial production grew 0.2% month-on-month in June, defying forecasts for a 0.1% decline and following a downwardly revised 0.8% fall in May. The modest uptick extended across most sectors—particularly intermediate and capital goods—even as consumer goods output lagged. On a workday adjusted basis, production remained down 0.9% year-on-year, slightly better than May’s 1.0% drop. National statistics agency ISTAT noted that the sector may have bottomed out after a prolonged slump. While the gain is unlikely to signal a full turnaround, it suggests that policy support and easing supply constraints are beginning to stabilize manufacturing. Continued improvement in July PMI readings would strengthen hopes of a durable rebound.