Eurozone manufacturing output accelerated in July while new orders and exports stayed weak. The survey’s output index rose from 51.7 to 52.9, reaching its peak since March 2022. Production growth outpaced the overall manufacturing conditions, but companies relied heavily on work received in previous months. New orders grew only marginally and lagged behind the pace of production. Export orders declined once more, with decreases in France, Spain, Italy, and Austria outweighing gains elsewhere in the currency zone.

The European Union has launched the Scaleup Europe Fund with a target of €5 billion, aimed at strategic technology firms. The European Commission finalized the legal procedures for the fund on August 4, integrating it into the European Innovation Council Fund. Managed by EQT, the fund now has the authority to make independent investments on market terms. The Commission anticipates initial investments will be made within the next few weeks, with ongoing efforts to raise additional capital toward reaching the €5 billion goal.

OECD inflation eased to 4.2% in June as energy price growth slowed across member economies. Energy prices largely contributed to the monthly slowdown. The OECD energy inflation rate dropped four percentage points to 11.7% year on year, down from 15.8% in May. Out of the 37 countries with available data, 24 experienced a decline in energy inflation, although 10 saw increases. Six countries still reported rates exceeding 15%. Despite the broad retreat, energy continued to be a significant factor in annual price growth, although it contributed less to the overall headline inflation.

The UK’s economy remains out of recession, yet new forecasts indicate mounting pressure from global energy disruptions. EY increased its growth projection for 2026 to 0.9%, up from 0.8% in May, while maintaining its baseline estimate for 2027 at 1.2%. This outlook assumes the Strait of Hormuz reopens by September with reduced tanker traffic. EY’s worst-case scenario predicts 0.5% growth this year and a 0.2% decline in 2027. UK economic growth continues as inflation, hiring and investment pressures remain.

U.S. equities saw strong gains on Monday, with technology stocks leading the way and crude oil prices falling sharply. The Dow Jones Industrial Average increased by 693.38 points, or 1.32%, closing at an all-time high of 53,178.41. The S&P 500 gained 1.48%, reaching 7,600.50, just shy of its record. The Nasdaq Composite surged 2.13% to 25,913.90, outpacing other major indexes. The market’s rally began August with broad-based gains across both large-cap and small-cap stocks.