Eurozone PMI Falls Below 50, Signals Contraction

Eurozone economic activity contracts as U.S. data shows mixed signals; ECB holds rates steady.

TL;DR:

• 📉 Eurozone PMI drops into contraction
• 🏦 ECB keeps rates unchanged at 2.15%
• 📊 U.S. jobless claims rise to 228K
• 🏠 U.S. new home sales beat forecasts

Eurozone PMI Drops Into Contraction

The S&P Global Composite PMI for the Eurozone fell to 49.8, slipping below the 50 mark and signaling contraction across manufacturing and services. This move points to mounting economic headwinds in the region and could weigh on market sentiment, especially for euro-denominated assets. Source

ECB Keeps Rates Unchanged at 2.15%

The European Central Bank left its main interest rate steady at 2.15%, as widely expected. This decision reflects a wait-and-see approach amid persistent inflation and weaker growth signals, with markets now closely watching for any future policy shifts. Source

U.S. Jobless Claims Rise to 228K

Initial jobless claims in the U.S. increased to 228,000 from 221,000 last week, indicating a mild softening in the labor market. This uptick could influence Federal Reserve rate expectations and add caution for risk assets. Source

U.S. New Home Sales Beat Forecasts

New home sales in the U.S. climbed to 650,000, up from 623,000 previously, underscoring persistent strength in the housing sector despite broader economic uncertainty. This data point supports resilience in consumer demand for real estate. Source