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Switzerland’s external sector strengthened in February, with the trade balance improving to a 4.204 billion surplus from 3.752 billion previously. The wider surplus suggests Switzerland exported relatively more than it imported during the month, reinforcing the country’s still-solid trade position. While this is only one monthly reading, the latest figure points to a stronger external balance and continued support from Switzerland’s export sector.

Source: Federal Office for Customs and Border Security / Switzerland trade data

Eurozone inflation data for February showed that the broader disinflation trend remained intact, while monthly price growth came in slightly softer than expected. Headline CPI held at 1.9% YoY, unchanged from the forecast and up from 1.7% previously. Core CPI also matched expectations at 2.4% YoY, compared with 2.2% in the prior reading, suggesting underlying price pressure is still above headline inflation.

On a monthly basis, the picture was a bit softer. CPI rose 0.6% MoM, below the 0.7% forecast but a clear rebound from -0.6% previously. Core CPI increased 0.8% MoM, matching expectations and recovering from -1.1% in the previous month. Meanwhile, HICP excluding energy and food rose 2.3% YoY and 0.6% MoM, with the monthly reading slightly below the 0.7% estimate. Overall, the data suggest that eurozone inflation remains relatively stable, but the monthly figures do not point to a renewed upside inflation shock.

Source: Eurostat

Germany’s latest 30-year Bund auction cleared at 3.450%, slightly below the previous 3.470%. The small decline suggests long-term borrowing costs eased marginally in this auction, indicating investors accepted a slightly lower yield to hold ultra-long German government debt. The move points to a modest improvement in demand at the long end of the curve.

Source: Deutsche Finanzagentur

March survey data showed a sharp deterioration in forward-looking sentiment across Europe. Eurozone ZEW Economic Sentiment plunged to -8.5 from 39.4, massively below the 26.5 expectation. In Germany, ZEW Economic Sentiment dropped to -0.5 from 58.3, also far weaker than the 39.0 forecast. The only relative bright spot was German current conditions, which improved slightly to -62.9 from -65.9 and came in better than the -67.1 expectation. The data signals that confidence in the outlook has deteriorated sharply, even if the assessment of current conditions improved marginally.

Source: ZEW

Italy’s February inflation data pointed to a firmer price trend, although the readings came in a touch below market forecasts. HICP rose 0.5% month-on-month and 1.5% year-on-year, compared with expectations of 0.6% and 1.6%. The national CPI increased 0.7% MoM and 1.5% YoY, also slightly below forecasts, but both stronger than the previous readings of 0.4% and 1.0%. Meanwhile, CPI excluding tobacco accelerated to 1.1% YoY from 0.8%. The overall message is that inflation in Italy is picking up again, but not strongly enough to surprise on the upside.

Source: Istat

Switzerland’s February producer-price data showed a fresh weakening in upstream price pressure. PPI fell 0.3% month-on-month, worse than the 0.0% expectation and slightly weaker than the previous -0.2%. On an annual basis, producer prices dropped 2.7%, deepening from -2.2% previously. The data suggests pipeline inflation remains firmly negative, reinforcing the view that price pressure in Switzerland is still soft at the producer level.

Source: Swiss Federal Statistical Office

France’s latest short-term debt auction showed a mixed but generally firm yield picture. The 12-month BTF yield edged up to 2.353% from 2.339%, while the 3-month BTF yield also inched higher to 2.108% from 2.097%. In contrast, the 6-month BTF yield eased slightly to 2.199% from 2.217%. The auction suggests French short-term funding costs remain elevated overall, even though demand conditions were stable enough to produce only limited moves across the curve. In practical terms, the result points to a money-market environment that remains relatively tight rather than one signaling any sharp easing in front-end rates.

Source: Agence France Trésor

Germany’s latest debt auctions showed higher short-term borrowing yields, with the 12-month Bubill auction rising to 2.270% from 1.985%, and the 6-month Bubill yield climbing to 2.121% from 1.986%. The move suggests firmer demand for yield compensation in short-dated paper. At the same time, EU reserve assets total increased to 2,046.00B from 1,987.13B, indicating a notable rise in the bloc’s reserve holdings. Together, the data points to tighter short-term funding conditions in Germany alongside a stronger reserve position at the EU level.

Source: Deutsche Bundesbank; European Central Bank

Germany’s non-seasonally adjusted current account surplus rose to €17.1 billion in January 2026, up from €16.1 billion in December 2025, according to the Deutsche Bundesbank. The move points to a modest improvement in Germany’s external balance at the start of the year, suggesting the country’s overall income and trade flows remained supportive even as broader European growth stayed soft.

Source: Deutsche Bundesbank.

Euro area industrial production fell 1.5% month-on-month in January and 1.2% year-on-year, badly missing expectations and showing the region’s factory sector was already weak even before the latest energy shock from the Middle East. The data points to a soft start to 2026 for euro-area manufacturing, with pressure still building on growth-sensitive sectors.

Source: Eurostat.

Italy’s industrial sector stayed weak at the start of the year. Industrial production fell 0.6% MoM in January, missing the 0.4% growth expectation, while the annual rate dropped 0.6% YoY, compared with market expectations for 0.8% growth. The figures suggest Italy’s manufacturing base remains under pressure, with activity slipping again after an already soft prior trend.

Source: Istat

Spain’s February inflation data showed price pressures staying stable but still relatively firm. Headline CPI held at 2.3% YoY, while HICP stood at 2.5% YoY and core CPI remained stronger at 2.7% YoY. On a monthly basis, both CPI and HICP rose 0.4%, rebounding from the negative monthly readings seen previously. The data suggests Spain entered late winter with inflation broadly steady, while core price pressure stayed slightly hotter than the headline measure.

Source: INE (National Statistics Institute of Spain)