Inflation rises and de-escalation. Airlines recover losses.

European markets are regaining some optimism, although valuations remain suspended.In the afternoon session, the SPA35 contract is performing best, up 0.7%; lagging behind is NED25, down more than 0.5%. EU50 is down 0.5%. Across Europe, among futures on the main indices, W20 is the top performer, rising by around 2%.De-escalatory rhetoric from D. Trump on Thursday supported a rebound after steep losses at the turn of this week and last week. Despite positive impulses and improved sentiment, buyers have lost momentum today.

French underwater-drone maker Exail Technologies was unable to reach an agreement with ICG regarding the valuation of its bonds. The stock is down more than 10%.Rising inflation in France is supporting valuations of fashion and luxury companies, which traditionally have much better ability to defend and expand margins in an inflationary environment.LVMH and Hermès are up more than 4%.Falling oil and fuel prices are supporting valuations of European airlines. Lufthansa is up more than 6%, while Ryanair gains around 4%.Air France is additionally supported by talks about the purchase of EasyJet. The French carrier is up as much as 9%.

• In the afternoon session, the SPA35 contract is performing best, up 0.7%; lagging behind is NED25, down more than 0.5%. EU50 is down 0.5%. Across Europe, among futures on the main indices, W20 is the top performer, rising by around 2%.
• De-escalatory rhetoric from D. Trump on Thursday supported a rebound after steep losses at the turn of this week and last week. Despite positive impulses and improved sentiment, buyers have lost momentum today.
• French underwater-drone maker Exail Technologies was unable to reach an agreement with ICG regarding the valuation of its bonds. The stock is down more than 10%.
• Rising inflation in France is supporting valuations of fashion and luxury companies, which traditionally have much better ability to defend and expand margins in an inflationary environment.LVMH and Hermès are up more than 4%.
• LVMH and Hermès are up more than 4%.
• Falling oil and fuel prices are supporting valuations of European airlines. Lufthansa is up more than 6%, while Ryanair gains around 4%.Air France is additionally supported by talks about the purchase of EasyJet. The French carrier is up as much as 9%.
• Air France is additionally supported by talks about the purchase of EasyJet. The French carrier is up as much as 9%.
• Rolls-Royce and Safran are up nearly 4%. This follows a Berenberg publication pointing to a significant improvement in the number of hours spent in the air per engine.
• European car manufacturers are posting strong gains. Stellantis, Renault, and Volkswagen are up between 3% and 6%.This is the result of an open letter to the European Commission arguing that the EU should adopt a transparent “Made in Europe” system that would favor vehicles whose 70% of value originates in Europe.
• This is the result of an open letter to the European Commission arguing that the EU should adopt a transparent “Made in Europe” system that would favor vehicles whose 70% of value originates in Europe.
• A hefty batch of macroeconomic data came in from Europe, mainly on inflation.May inflation in Germany, France, and Spain came in in line with expectations but remains slightly elevated. Year-on-year HICP was 2.7%, 2.8%, and 3.6%, respectively.In the UK, economic growth slowed to 1.2% year-on-year. Industrial production fell by 0.2%.
• May inflation in Germany, France, and Spain came in in line with expectations but remains slightly elevated. Year-on-year HICP was 2.7%, 2.8%, and 3.6%, respectively.
• In the UK, economic growth slowed to 1.2% year-on-year. Industrial production fell by 0.2%.
• Among energy commodities, oil remains in the spotlight, extending yesterday’s declines. Brent is down almost 2% and stands at USD 87.Among metals, palladium and copper are gaining—by around 2%.
• Among metals, palladium and copper are gaining—by around 2%.

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