Italy's trade surplus widened to €8.24 billion in July 2026, the largest since July 2020, from €7.83 billion in July 2025 and well above market forecasts of €4.77 billion. Exports grew by 4.7% yoy to a record high of €64.55 billion, bolstered by shipments of basic metals and fabricated metal products (+13.8%), coke and refined petroleum products (+27.3%), and sporting goods, games, musical instruments, precious metals, medical instruments, and others (+15.9%). Overseas sales grew more strongly for non-EU markets (+6.6%), particularly Switzerland (+39.6%), followed by OPEC countries (+26.3%) and China (+27.6%). Exports to the EU increased 2.8%, led by the Netherlands (+5%) and France (+4.2%). Meanwhile, imports rose by 4.6% to €56.31 billion, driven by mining & quarrying (28.7%); coke and refined petroleum products (+27%) and basic metals and fabricated metal products (+9.9%). Imports from EU and non-EU countries rose by 4.9% and 4.2%, respectively.

European stocks moved lower on Tuesday, extending losses from the previous session. The STOXX 50 fell 0.8% to low levels not seen in nearly two months, while the STOXX 600 declined 0.6% to three-month lows. Oil prices continued to climb, with Brent crude trading above $107 a barrel, adding to concerns over an already challenging inflation outlook. Bond yields also continued to rise, reaching multi-year highs and further weighing on equity valuations and investor sentiment. Banks were among the biggest laggards, with UBS down 3.6%, Deutsche Bank 3.5%, UniCredit 2.4% and HSBC 1.6%. Other major stocks also traded lower, with LVMH falling 1.8%, L’Oreal declining 1.1% and Siemens down 0.8%. On the other hand, ASML Holding rose 0.9%, recovering modestly after a sharp decline in the previous session. Thales (+1.5%) and Rheinmetall (+0.8%) also traded higher.

Brent crude climbed above $107 per barrel on Tuesday following a volatile start to the week, as investors continued to navigate heightened uncertainty over global supply. Saudi Arabia’s East-West pipeline, which provides an alternative route to the Strait of Hormuz, remains shut following drone attacks, with no clear indication of when operations will resume. A diplomatic meeting between Iran and the Gulf Arab states to discuss the situation in Hormuz was also abruptly postponed. Meanwhile, Iran claimed that a supertanker attempting to enter a restricted area in Hormuz exploded after striking mines, while maintaining that it would not engage in talks with the US until its demands are met. In Eastern Europe, President Zelenskyy said Ukraine is prepared to halt attacks on Russian energy targets if Russia does the same, contradicting US President Trump’s claim that Moscow and Kyiv had already agreed to suspend strikes against each other’s energy infrastructure.

Germany’s wholesale prices increased 6.8% year-on-year in August 2026, accelerating from a 5.3% rise in the previous month and marking the 21st consecutive month of increase. It was the fastest increase in wholesale price inflation since February 2023, driven mainly by higher energy products and raw materials amid ongoing hostilities in the Middle East. Prices rose sharply for mineral oil products (36.1%), followed by non-ferrous ores, metals and semi-finished products (27.4%), chemical products (13.6%), and information and communication technology equipment (11.1%). Conversely, prices fell for live animals (-18.3%), milk, dairy products, eggs, edible fats and oils (-10.3%), and meat and meat products (-6.7%). On a monthly basis, wholesale prices rose 0.9%, accelerating from a 0.2% gain in July, marking the fastest pace in four months and surpassing market expectations of 0.1%.

The UK unemployment rate was unchanged for the fourth consecutive period at 4.9% in the three months to July 2026, defying expectations that it would rise to 5.0%. The number of unemployed people rose by 11 thousand from the previous quarter and by 83 thousand year-on-year to 1.778 million. The annual increase was driven by a rise in those unemployed for more than six months. Meanwhile, total employment rose by 66 thousand from the previous period to 34.478 million, as full-time employment increased by 109 thousand while part-time employment fell by 42 thousand. From a year earlier, total employment was up by 243 thousand, with both full-time and part-time employment increasing. The number of people holding second jobs increased in the latest quarter to 1.283 million, accounting for 3.7% of all employed individuals. Lastly, the inactivity rate fell by 0.1 percentage point from the previous quarter to 20.9%.

China’s retail sales rose 0.4% year-on-year in August 2026, slowing from a 0.6% gain in July and falling short of market expectations of a 0.8% increase. Big-ticket automobile sales continued to decline, falling 18.5%, while furniture (-7.9%), building materials (-11.8%), and gold and silver jewelry sales (-17.5%) also dropped. Excluding automobiles, retail sales grew 2.5%. Meanwhile, communication equipment sales surged 27.3%, alongside strong gains in tobacco and alcohol (+12.5%), cultural and office supplies (+5.8%), and cosmetics (+4.9%). By segment, catering revenue increased 1.1%, while goods sales rose 0.3%. Online retail sales of goods advanced 4.3% in the first eight months of the year. On a monthly basis, retail sales fell 0.13% in August after edging up 0.01% in the previous period. From January to August, retail sales increased 1.1% year-on-year, while sales excluding automobiles rose 2.7%.