US and European equities edged lower after a fresh inflation print reinforced expectations that central banks will cut rates more slowly than markets hoped. The two-year Treasury yield rose above 4.7% as traders pushed back the timing of the next Fed move. US futures turned negative before the open.

Strategists said the move reflected repricing rather than panic. Defensive sectors outperformed while rate-sensitive growth stocks underperformed, particularly software and smaller-cap tech names.

European lawmakers moved ahead with draft rules that would require major generative AI platforms to disclose model limitations, label synthetic media, and provide clearer reporting on copyrighted training inputs. Officials said the goal is to make high-impact systems easier to audit and compare.

Industry groups warned that compliance could favor larger incumbents, while regulators argued that baseline transparency is becoming essential as AI tools move into elections, education, and enterprise workflows.

Qatari and Egyptian mediators circulated a shorter ceasefire proposal aimed at reopening aid corridors and restarting hostage exchanges after a broader framework stalled. UN officials warned that deliveries into northern Gaza remain far below emergency needs.

Diplomats said the revised proposal focuses on a narrower humanitarian window rather than a durable political breakthrough. Negotiators described the talks as difficult but still active.

Regional authorities in Spain, Italy, and southern France are preparing seasonal water restrictions after reservoirs failed to recover over winter. Agricultural groups warned that reduced allocations could hit yields for olives, citrus, and wine grapes.

Officials said emergency planning is beginning earlier than usual because snowpack and rainfall deficits have persisted across several basins. Utilities are also reviewing summer conservation campaigns.