French business activity showed a marked improvement in June, with the composite purchasing managers' index rising to 47.6 from 44.9 in May.

The data, reported by Nyhetsbyrån Direkt, indicates a stronger-than-expected recovery in sentiment across the French economy, although the reading remains below the 50-point threshold that separates expansion from contraction.

The 2.7-point jump suggests that the pace of decline in French business activity is slowing significantly.

While the economy is still technically shrinking, the magnitude of the rebound points to stabilizing conditions in both manufacturing and services sectors.

This development offers a counter-narrative to broader concerns about stagnation in the eurozone's second-largest economy.

Markets have been closely watching for signs of stabilization in European growth indicators.