Euro zone government bond yields rose on Monday after a sharp fall last week, while the gap between Italian and German borrowing costs narrowed to its smallest since April 2022.
A drop-off in spending by inflation-hit consumers was one of the main reasons Germany fell into recession in the first quarter, even as other countries in the region managed to avoid it.
European Central Bank President Christine Lagarde on Monday acknowledged "signs of moderation" in core inflation in the euro zone but reaffirmed it was too early to call a peak in that key gauge of price growth. Lagarde's comments were likely to cement market expectations for more interest rate increases from the ECB this month and the next despite a sharp fall in inflation last month.
European prompt power prices rose on Monday on higher demand forecasts for the next day. German day-ahead baseload power traded at 96 euros per megawatt hour at 0927 GMT, up 11.6% from the price paid for Monday. The equivalent French contract was at 84 euros, up 10.9% from the price paid for Monday delivery.
Euro zone government bond yields rose on Monday after a sharp fall last week, while the gap between Italian and German borrowing costs narrowed to its smallest since April 2022.
Investors got more gloomy on prospects for the euro zone economy in June, dragged down by negative expectations for Germany, Europe's biggest economy, a survey showed on Monday.
Investors got more gloomy on prospects for the euro zone economy in June, dragged down by negative expectations for Germany, Europe's biggest economy, a survey showed on Monday.
Euro zone business activity was shored up last month by the bloc's dominant services industry offsetting a deepening decline in the manufacturing sector, according to a survey which also showed overall price pressures had abated.
Euro zone business activity was shored up last month by the bloc's dominant services industry offsetting a deepening decline in the manufacturing sector, according to a survey which also showed overall price pressures had abated.
The difference between 10-year Italian and German borrowing costs fell to its smallest since January on Friday, in a vote of confidence from investors on one of the euro zone's most indebted countries. The so-called spread between Italy and Germany's 10-year bond yields fell to 169 basis points, the narrowest gap since Jan. 19.
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