European markets

The European Central Bank has raised its key interest rates by 25 basis points, in line with market expectations. The decision continues the bank's campaign to bring inflation back toward its 2% target, and attention now turns to hints about whether further tightening is still to come.

Share indexes around the world are showing mixed results in Monday trading, even though Wall Street closed last week with a strong rally. US stocks ended Friday higher, but that momentum has not carried evenly into other regions, with Asian and European benchmarks split between gains and losses as investors weigh rate expectations and economic data.

European stock markets closed higher after a strong rally in UK homebuilder shares helped offset weakness in oil stocks and pressure from bond markets. The gains in British housebuilders were the standout driver of the session, keeping regional indexes in positive territory despite headwinds elsewhere.

Electric vehicles have outsold gasoline and diesel cars in Europe for the first time, according to reports by Korean media including Chosun Ilbo. The milestone marks a turning point for the European auto market, highlighting how quickly battery-powered cars have moved from the margins to mainstream dominance across the continent.

The European Union has updated its anti-greenwashing rules, tightening how companies can make environmental claims about their products. The revised law aims to ban vague or unverified sustainability labels and require claims such as 'climate neutral' to be backed by evidence. Businesses and marketers are watching closely to see how the changes will affect advertising and compliance obligations across the bloc.

Commentary in Internationale Politik Quarterly argues that a confrontation between the European Union and China is increasingly unavoidable. The piece frames growing economic and political friction between Brussels and Beijing as a structural clash rather than a passing dispute, reflecting wider debate in Europe about trade imbalances, market access and how to position the bloc amid US-China rivalry.

The European Union auctioned 2.792 million spot carbon permits at a clearing price of 85.9 euros per tonne. The result offers a snapshot of EU carbon market levels under the Emissions Trading System, which prices pollution for heavy industry and power producers. Traders and analysts track these auctions closely as the carbon price influences energy costs and corporate decarbonisation incentives.

European electric vehicle sales surged in January, widening the gap with the slower-growing U.S. market, according to a report by InsideEVs. The strong start to the year suggests European demand for EVs remains robust despite broader auto industry headwinds, while American adoption continues to lag behind.

The European Union's updated product liability framework is widening its scope so claims no longer hinge solely on physical damage. Under the new rules, compensation can cover data loss, psychological harm and damage from software and AI-enabled products. Commentators say the shift significantly raises exposure for manufacturers and tech firms selling into the EU market.