The Latest Breaking News from eurozone

European Central Bank makes eighth quarter-point cut in a year as bloc reels from impact of Trump’s trade wars

“You’re not about to see the back of me,” insists Lagarde, sporting a necklace reading ‘in charge’, following claims she discussed leaving ECB early to run World Economic Forum

The dollar index (DXY00 ) Tuesday rose by +0.53%. The dollar on Tuesday recovered from a 6-week low and moved higher after weaker-than-expected Eurozone inflation news knocked the euro lower. Also, weakness in the yuan supported gains in the dollar after a gauge of Chinese manufacturing activity contracted in May...

Eurozone inflation fell to 1.9% in May, below forecasts, boosting expectations of an ECB rate cut on Thursday. Core inflation also eased to 2.4%. The euro slipped and bond yields fell as markets priced in a 25bp rate cut to 2.0%.

While the Eurozone and Spanish manufacturing purchasing managers’ index (PMI) increased in May, the German manufacturing sector continued to lag for the 35th consecutive month.

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.

Stubborn inflation, mounting sovereign debt, and wary investor sentiment are pushing 30‑year government bond yields sharply higher across the U.S., Japan, Germany, the U.K., Canada and the eurozone, heralding a new era of elevated borrowing costs and heightened recession risk worldwide.

Impact of tariffs demands ‘considerable downgrade’, to 0.9% this year and 1.4% in 2026, says European Commission

The EU on Monday sharply cut its eurozone economic growth forecast for 2025 because of global trade tensions sparked by US President Donald Trump's sweeping tariffs.

Eurozone GDP grew 0.3% in the first quarter of 2025, with strong gains in Ireland and Spain. Employment rose 0.3%, beating forecasts. March industrial output surged 2.6%, the fastest in five years.

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.