France manufacturing PMI fell to 49.8 in July from 51.2 in June, slipping back into contraction as output and new orders declined at faster rates. S&P GLOBAL MARKET INTELLIGENCE said inflationary pressures and weak business confidence are weighing on orders, and that recent oil and gas price rises signal broader macro and geopolitical volatility which could further erode confidence and risk additional demand weakness, particularly if inflation re-accelerates.

Swiss consumer prices rose 0.4% YoY in July, down from 0.5% in June and matching median economist forecasts, the Swiss Federal Statistical Office said. Core inflation excluding energy held at 0.3%. Higher diesel and heating-oil costs were offset by price declines in clothing, car rentals and other goods and services. The print contrasts with the Swiss National Bank’s earlier view of a mild, temporary uptick in inflation. Insiders said SNB staff expect policy rates to remain at zero through the end of next year absent new shocks.

The Geophysical Institute of Peru reported a magnitude-5.7 earthquake at 20:42 local time on Aug. 2, about 53 km northeast of Ocayacu in Leoncio Prado province, Huánuco. Depth 152 km; no casualties or damage reported.