Eurozone PPI Drops 3.4% YoY; U.S. MBA Mortgage Rate Climbs to 6.81%, Applications Down 10.8%

Recent economic data from Europe and the U.S. reveals significant trends. In the Eurozone, the Producer Price Index (PPI) decreased by 0.6% month-over-month and fell 3.4% year-over-year, matching forecasts. Germany reported a bid-to-cover ratio of 2 for its 15-year bond auction, with a yield of 2.64%, up from 2.52% previously. In the U.S., the MBA 30-year mortgage rate rose to 6.81%, an increase from 6.73% the previous week. Additionally, mortgage applications dropped by 10.8%, a stark contrast to the prior week's increase of 0.1%. The Energy Information Administration (EIA) reported distillate inventories at 2.947 million barrels, significantly exceeding the forecast of a decrease of 0.497 million. Meanwhile, Japan's average cash earnings increased by 2.8% year-over-year, slightly below the expected 3%. Industrial production in Germany saw a year-over-year decline of 2.51%, while the trade balance recorded a surplus of 17.0 billion euros, falling short of the forecast of 20.9 billion euros. Other European nations also reported mixed economic signals, with France's construction PMI at 42.2 and Italy's at 48.2.