Euro Zone inflation accelerates; US job openings rise; Palo Alto tops forecasts

Inflation in the European Union accelerates

According to data released by Eurostat, the Eurozone headline inflation rate accelerated from 3.0% in April to 3.2% in May, aligning with analyst expectations. This level represents the highest reading since September 2023, reflecting mounting pressure on the European Central Bank (ECB) ahead of its upcoming monetary policy decisions. Concurrently, Eurostat revealed that the core inflation rate—which excludes volatile energy and unprocessed food components—increased from 2.2% to 2.5%, surpassing the market consensus forecast of 2.4%. Economists noted growing concern that elevated energy prices are beginning to filter into core inflation, which poses a significant challenge for central banks as it represents the stickiest component to combat.

An analysis from Trading Economics indicates that the most significant contributor to headline inflation came from energy costs, which jumped by 10.9%—the largest increase recorded since February 2023. Additionally, price increases in services and non-energy industrial goods accelerated, albeit at a more moderate pace. Consequently, inflationary performance within the Eurozone remains heavily linked to ongoing geopolitical tensions in the Middle East, which have severely disrupted energy supply chains and distribution channels to European countries.

Regarding the foreign exchange market reaction, the euro experienced a marginal depreciation of 0.04% against the US dollar, trading at 1.1628. Both the ECB and the Federal Reserve are closely monitoring these trends to determine the trajectory of interest rates.

US Job Openings rise above market expectations

According to data from the US Bureau of Labour Statistics (BLS), the JOLTS Job Openings indicator increased from a revised 6.89 million positions in March to 7.62 million in April, significantly exceeding the analyst consensus forecast of 6.88 million. This represents the highest level for the indicator since November 2024, signalling remarkable resilience within the United States labour market. The BLS report revealed that the Professional and Business Services sector was the largest beneficiary of new job creation, adding 668,000 positions, which contrasted sharply with previous employment indicators that had hinted at contraction. Conversely, the Finance and Insurance sector was the hardest hit, with job openings declining by 135,000.

These robust results provided strong support for equity benchmarks, which reached new all-time highs amidst a steady recovery in the US employment sector. The S&P 500 advanced by 0.13% to close at 7,609 points, the Nasdaq 100 rose by 0.48% to 30,660, and the Dow Jones Industrial Average appreciated by 0.45% to finish at 51,313 points. Market participants have now shifted their focus to upcoming employment data due later this week, most notably non-farm payrolls and the unemployment rate.

Figure 1. US Job Openings (2025-2026). Source: Data from the US Bureau of Labour Statistics; Figure obtained from Trading Economics.

Palo Alto Networks surpasses analysts' expectations on revenue and EPS

Palo Alto Networks closed near record highs following a solid quarterly earnings report that surpassed analyst forecasts for both top-line revenue and earnings per share (EPS). The cybersecurity technology company reported revenue of $3 billion, beating the market consensus estimate of $2.94 billion. In tandem, the firm posted an EPS of $0.85, ahead of the $0.79 projected by Wall Street. These results represent a year-on-year growth rate of 31% in revenue and a 6.2% increase in EPS. In summary, US corporations continue to deliver robust earnings reports characterized by prominent growth rates, which remains the primary catalyst driving US stock indices—particularly technology firms—to successive record highs.