European Markets Held Steady In June, Eurozone M3 Money Supply Growth Stood at 3.9% In May

Bridgette Randall
30 Jun, 2025
London

European markets struggled on Monday amid a lack of clarity on trade negotiations with the U.S. and unverifiable claims by the U.S. president.

Benchmark indexes in Frankfurt, Paris, Milan, and London struggled to advance, and they traded around the flatline after a month of trading in June. 

Market sentiment remained cautious amid a lack of visible progress in bilateral talks between the European Union and the U.S., and high tariffs on vehicles and parts remain a sticky point.

Moreover, additional U.S. tariffs on steel, aluminum, and food products kept negotiators struggling to find a common ground.

The Trump administration's claims of key trading partners' readiness to sign trade deals under the threat of sky-high tariffs have so far proven to be wrong and misleading. 

China, Japan, Canada, Mexico, and the European Union have resisted the threats of high U.S. tariffs, and key trading partners have retaliated with tariffs on U.S. goods and services.

 

Germany's Retail Sales Contracted for the 2nd Consecutive Month in May

On the economic front, Germany's retail sales unexpectedly declined in May, the Federal Statistical Office reported Monday.

Retail sales decreased 1.6% from the previous month and fell for the second consecutive month. 

Food and non-food store sales decreased 1.3% and 2.2% from the previous month, respectively. 

On an annual basis, retail sales increased at a slower pace of 1.6% compared to the upwardly revised 2.9% in April. 

 

EU Private Sector Credit Expansion Growth Stayed Elevated In May

The annual growth rate of the broad monetary aggregate M3, or money supply, stood at 3.9% in May, unchanged from the previous month, averaging 3.8% in the three months to May. 

Overall lending growth to the private sector, including households and corporations, held steady at 2.8% in May, according to the latest data from the European Central Bank. 

The credit expansion to the private sector was the strongest since May 2023. 

Lending to households increased to 2.0%, to 7.002 trillion, faster than a 1.9% rise in April, amid rising demand from consumers and falling interest rates. 

Lending growth to non-financial businesses slowed to 2.5% from 2.6% in April.

 

Europe Indexes and Yields

The DAX index increased by 0.2% to 24,087.14, the CAC-40 index edged higher by 0.2% to 7,710.08, and the FTSE 100 index advanced 0.1% to 8,809.03.

The yield on 10-year German bonds inched lower to 2.58%, French bonds decreased to 3.26%, UK gilts moved down to 4.49%, and Italian bonds edged lower to 3.48%.

The euro increased to $1.17; the British pound was higher at $1.37; and the U.S. dollar edged lower and fell to a multi-year low of 79.77 Swiss cents.

Brent crude decreased $0.24 to $66.56 a barrel, and the Dutch TTF natural gas was higher by €0.03 to €33.46 per MWh.

 

Europe Stock Movers

Fashion and luxury stocks advanced amid hopes of a U.S. trade agreement ahead of the looming July 9 deadline. 

LVMH edged up 0.3% to €450.55, Kering SA added 1.3% to €186.64, and Hermes International SCA added 1.1% to €2,300.0. 

Defense stocks advanced for the third session in a row after NATO leaders pledged to increase defense spending to 5% of gross domestic product but failed to confirm the deadline. 

Rheinmetall AG gained 1.5% to €1,778.0, MTU Aero Engines AG increased 0.6% to €376.90, BAE Systems plc added 0.7% to 1,874.0 pence, and Rolls Royce Holdings PLC edged up 2.2% to 974.40 pence.