{"id":65781,"date":"2026-01-06T19:34:40","date_gmt":"2026-01-06T19:34:40","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/europe-bulletin-ftse-breaks-10000-eurozone-inflation-falls-germany-manufacturing-slumps\/"},"modified":"2026-01-06T19:34:40","modified_gmt":"2026-01-06T19:34:40","slug":"europe-bulletin-ftse-breaks-10000-eurozone-inflation-falls-germany-manufacturing-slumps","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/europe-bulletin-ftse-breaks-10000-eurozone-inflation-falls-germany-manufacturing-slumps\/","title":{"rendered":"Europe bulletin: FTSE breaks 10,000, Eurozone inflation falls, Germany manufacturing slumps"},"content":{"rendered":"

(Originally posted on : Invezz )<\/b>
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Europe\u2019s markets and politics closed the year on sharply diverging tracks.<\/p>\n

Britain\u2019s FTSE 100 powered to a historic milestone as geopolitics turbocharged energy and defence stocks, while the eurozone enjoyed a rare mix of falling inflation and resilient growth.<\/p>\n

Germany\u2019s services sector held firm, masking a deepening manufacturing slump.<\/p>\n

Meanwhile, Greenland delivered a calm but firm rebuke to US saber-rattling, underscoring the hard limits of power politics in Europe\u2019s northern flank.<\/p>\n

Greenland pushes back calmly<\/h2>\n


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Greenland PM Jens-Frederik Nielsen struck a measured tone on Tuesday, brushing aside immediate takeover fears while maintaining firm resolve.<\/p>\n

Nielsen drew a sharp distinction between Greenland and Venezuela, a democratic nation with entrenched institutions versus a destabilised state.<\/p>\n

He flatly stated that democratic norms and legal frameworks preclude any unilateral US seizure.<\/p>\n

Yet beneath Nielsen\u2019s calm rhetoric lies a steelier resolve: Europe rallied around Denmark, with PM Frederiksen warning that military action against a NATO ally would trigger alliance dissolution.<\/p>\n

The subtext is unmistakable: Trump\u2019s saber-rattling, however vocal, confronts real geopolitical constraints.<\/p>\n

FTSE 100 breaks 10,000<\/h2>\n


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Britain\u2019s blue-chip FTSE 100 smashed through the 10,000-point barrier on Tuesday, posting a record high of 10,057 points on the back of surging energy and defence stocks.<\/p>\n

The catalyst was geopolitical; US military intervention in Venezuela triggered a scramble for energy plays and defense names.ames.<\/p>\n

Shell and BP climbed 1.3% and 0.8% respectively as crude prices spiked on Venezuela production uncertainty.<\/p>\n

Defence heavyweights BAE Systems, Babcock International, and Rolls-Royce each gained 1.8% to 2.4%, banking on heightened global tensions and defense spending momentum.<\/p>\n

The broader story? The FTSE\u2019s outperformance masks a tired old market hunting for value.<\/p>\n

It beat the S&P 500\u2019s 16.65% gain in 2025 with a 21% rally, capitalising on shifts away from frothy US tech valuations toward dividend-rich mining, banking, and commodities plays.<\/p>\n

Eurozone inflation falls, growth holds<\/h2>\n


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Eurozone inflation retreated sharply in December, delivering the ECB\u2019s preferred narrative of a \u201csoft landing\u201d intact.<\/p>\n

Germany\u2019s headline rate collapsed to 2.0% from 2.6%, well below economist forecasts of 2.2%, while France eased to 0.7% and Spain to 3.0%.<\/p>\n

The culprit: tumbling producer prices, collapsing import costs, and a stronger euro deflating foreign goods.<\/p>\n

This disinflationary push signals eurozone-wide headline inflation could dip below 2% when full December figures arrive Wednesday.<\/p>\n

Yet here\u2019s the plot twist: growth remains surprisingly resilient.<\/p>\n

PMI data showed the bloc posted its strongest quarterly expansion in over two years, with services offsetting manufacturing weakness.<\/p>\n

The ECB reads this as near-perfection, no rate cuts needed, no hikes required. Money markets price zero probability of cuts through 2026.<\/p>\n

Germany services hold, factories sink<\/h2>\n


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Germany\u2019s services sector ended 2025 with solid growth, logging a PMI of 52.7 in December, its slowest pace in three months but still comfortably above the 50 expansion threshold.<\/p>\n

New business growth cooled considerably, the weakest in the current streak, though Asian demand offered modest relief.<\/p>\n

Notably, employment rose for the third straight month, with firms trimming work backlogs at the fastest pace since September.<\/p>\n

The headline threat: wages and input costs accelerated, squeezing margins, yet companies managed to pass costs onto customers with faster price hikes.<\/p>\n

The real story, however, is manufacturing\u2019s collapse.<\/p>\n

The composite PMI sank to 51.3 from 51.5, masked by services resilience. Germany\u2019s factories plunged to 47.0 in December, a ten-month low, as export orders cratered.<\/p>\n<\/p><\/div>\n

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(Originally posted on : Invezz ) Europe\u2019s markets and politics closed the year on sharply diverging tracks. Britain\u2019s FTSE 100 powered to a historic milestone as geopolitics turbocharged energy and defence stocks, while the eurozone enjoyed a rare mix of falling inflation and resilient growth. Germany\u2019s services sector held firm, masking a deepening manufacturing slump. […]<\/p>\n","protected":false},"author":3947362395,"featured_media":65782,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[37],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/65781"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362395"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=65781"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/65781\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/65782"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=65781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=65781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=65781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}