Business activity in the Eurozone has increased as expected, with the European Central Bank (ECB) likely to announce a 25-basis point cut to the main lending rate. Data from the latest HCOB purchasing managers' index (PMI) shows that private sector output in most Eurozone economies expanded at the fastest rate in a year in May. Growth in Germany, Italy, and Spain outweighed a slight downturn in France, leading to overall positive business activity across the Eurozone. Inflation also cooled during this period, providing further support for the anticipated interest rate cuts by the ECB.

Vistry has announced the sale of 1,750 homes to Blackstone, with the properties set to be managed by private rented housing firm Leaf Living. Meanwhile, retail sales in the UK saw a slight increase in May. In the financial markets, both UK and European shares are experiencing losses, with oil prices also falling as investors anticipate an increase in supply later in the year. The FTSE 100 index in London is down by 0.4%, while Germany's Dax and France's CAC have both dropped around 0.3%. Italy's FTSE MiB has seen the largest decline, falling by nearly 0.7%.