European Markets Trend Lower Ahead of Rate Decisions, Spain's Labor Market Remains Resilient

Bridgette Randall
03 Jun, 2025
London

Stock market indexes across Europe struggled to advance ahead of rate decisions by the European Central Bank. 

Benchmark indexes in Frankfurt, Paris, Milan, and London decreased ahead of the release of inflation data in the eurozone. 

Overall consumer price inflation in the eurozone is expected to weaken to 2% in May, largely reflecting the weakness in transportation fuel prices and slower food price inflation. 

The decline in inflation is likely to support the European Central Bank's decision to lower interest rates on Thursday, as the policymakers take steps to ward off the negative impact of the trade uncertainties with the U.S.  

 

Spain's Labor Market Remains Resilient

The number of registered job seekers in Spain decreased by 2.3%, or 57,835, from the previous month to 2.455 million in May, according to the latest data released by the Ministry of Employment and Social Welfare. 

The registered count of jobless people fell below 2.5 million for the first time since July 2008. 

Compared to the same month last year, unemployment fell by 152,967 people, or 5.87%, and those receiving unemployment benefits at the end of April were 1.515 million. 

The youth unemployment under 25 fell by 6,426 from the previous month in May to 171,003, the lowest level since the record keeping began.  

 

Europe Indexes and Yields

The DAX index increased by 0.3% to 23,997.97, the CAC-40 index edged higher 0.3% to 7,757.82, but the FTSE 100 index declined 0.1% to 8,766.76.

The yield on 10-year German bonds inched lower to 2.49%, French bonds decreased to 3.15%, UK gilts moved down to 4.61%, and Italian bonds edged lower to 3.48%.

The euro decreased to $1.14; the British pound was lower at $1.35; and the U.S. dollar was higher and traded at 81.75 Swiss cents.

Brent crude increased $0.23 to $64.86 a barrel, and the Dutch TTF natural gas was higher by €0.30 to €35.28 per MWh.

 

Europe Stock Movers 

Julius Baer Gruppe AG decreased 2% to CHF 52.90, and the Swiss bank's new chief executive announced an additional cost cuts of CHF 130 million by 2028. 

Vehicle makers turned lower after the U.S. increased additional duties on steel and aluminum to 50% from 25%. 

BMW AG decreased 0.2% to €76.08, Mercedes-Benz Group fell 0.7% to €76.08, Daimler Truck Holding AG declined 0.3% to €36.77, Renault SA eased 0.6% to €43.44, and Volkswagen Group inched lower 0.5% to €93.08.