Finance

Economic output across the Eurozone unexpectedly accelerated at the start of the third quarter, with the preliminary composite PMI climbing to 51.9 from June's flat reading of 50.0. The uptick reflects a solid resurgence in new order intakes and broader demand, marking the first expansion in business activity in four months. Despite the momentum, economists warn that stubborn input price inflation and ongoing Middle East conflicts present downside risks for growth in the second half of the year.

The broader European technology sector regained footing on Friday, driven by a sharp rise in enterprise software giant SAP SE. The German company's shares surged up to 10% after its second-quarter current cloud backlog figures exceeded consensus estimates. This positive corporate snapshot helped offset recent market anxieties regarding the high capital expenditure required for artificial intelligence architecture relative to its near-term returns.

Brent crude futures cooled down slightly to settle under $100 a barrel, alleviating immediate fears that escalating geopolitical clashes between the U.S. and Iran-aligned forces would severely choke off energy pipelines. Concurrently, European markets are assessing the introduction of new U.S. trade tariffs targeting multiple global trading partners, which are keeping bond yields near multi-decade highs. Though the European Union's tariff impact is expected to remain capped at 10%, the protectionist measures add uncertainty to the international trade landscape.