Germany's Industrial Output Rebounded In May, UK's Home Price Index Increase Moderated In June

Bridgette Randall
07 Jul, 2025
London

European markets lacked direction on Monday as investors reassessed the bilateral trade negotiations between the European Union and the U.S. 

Benchmark indexes in Frankfurt, Paris, Milan, and London wavered around the flatline after the Trump administration pushed back the upcoming deadline to August 1 from July 9. 

The European Union is likely to strike a limited trade framework deal with the U.S. and delay detailed discussions at the industry level as far back as possible. 

Trade negotiators in Brussels are hoping to avert high tariffs on automobiles, food products, and pharmaceuticals while keeping the high barriers intact for U.S. food and agriculture products. 

 

Germany's Industrial Production Rebounded In May

On the economic front, Germany's industrial production advanced 1% in May from a year ago, reversing a decrease of 2.1% in April, the Federal Statistics Office reported Monday.

The manufacturing sector rebound was driven by a higher demand in pharmaceutical and automotive sectors, but the 3.9% contraction in the construction sector and the 1.8% decline in energy-intensive industry kept the gain in check.

 

Sweden's CPI Accelerated in June

Sweden's annual consumer price inflation accelerated to 0.8% in June from 0.2% in May, according to Statistics Sweden. 

The overall inflation jumped to a four-month high but well below the 2% target rate set by the Riksbank. 

 

UK Home Price Index Rises at Modest Pace

The UK's home price index rose at the slowest pace in eleven months, but home prices are expected to continue to rise at the modest pace in the second half.

The Halifax House Price Index in the UK increased 2.5% from a year ago in June, slower than the upwardly revised 2.5% in May. 

Home prices stalled in June, and the average home price was £296,665 compared to £296,782 in May.

"With markets pricing in two more rate cuts from the Bank of England by year-end, and the average rate on newly drawn mortgages now at its lowest since 2023, we continue to expect modest house price growth in the second half of the year”, said Amanda Bryden, Head of Mortgages, Halifax. 

 

Europe Movers

Allianz SE increased 0.9% to €344.60, Münchener Re Group added 0.7% to €561.80, and Commerzbank added 0.5% to €28.22. 

Rheinmetall AG added 0.3% to €1,759.50, MTU Aero Engines gained 1% to €374.80, Airbus SE increased 0.7% to €176.64, and Rolls-Royce Holdings plc advanced 0.9% to 971.20 pence. 

LVMH decreased 0.5% to €475.30, Kering SA dropped 0.7% to €196.72, Hermes International SCA gained 0.4% to €2,355.0, and Brunello Cucinelli SpA edged down 0.4% to €107.30.