DAX 30 & European Exchanges Fundamental Analysis – December 1, 2015 – Forecast

Analysis and Recommendation:

The DAX 30 gained 81 points to trade at 11375 after weak retail sales data hit the wires and traders are waiting for German inflation numbers, but the overall focus is on Mario Draghi and his stimulus package on Thursday.  German CPI figures headline the economic data docket in European trading hours. The benchmark year-on-year inflation rate is expected to tick narrowly higher to 0.4 percent in November from 0.3 percent in the prior month. The outcome seems unlikely to trigger a significant response from the Euro, with traders probably unwilling to commit to a firm directional bias ahead of the much-anticipated ECB policy announcement due later in the week. European shares opened lower, following falls in Asia, with investors nervous before the Thursday’s meeting at which the ECB may extend its bond-buying program and cut its already negative deposit rate. Shares later picked up.

Aside from monetary policy, the finance execs also highlighted the pain that German automaker Volkswagen could expect to experience following the fallout from its emissions scandal.

The carmaker was forced to take its first quarterly loss for 15 years, according to its third-quarter report in October. It anticipated hefty payouts to consumers around the world over the deceptive data on its diesel emissions and the potential recall of 11 million cars.

The CNBC survey found that over 42 percent of global CFOs thought that it would take VW more than five years for its group revenues to return to relative normality. Almost a third predicted that it would take between three and four years.

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Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Tuesday, December 1, 2015

Government Bond Auctions

Date Time Country

Dec 02 11:30 UK Gbp 3.75bn 1.5% Jan 2021 Gilt

Dec 02 16:30 Sweden Announces details of Bond on 11 Dec

Dec 03 10:30 Spain 1.15% Jul 2020 Bono

Dec 03 10:50 France

Dec 03 11:03 Sweden Sek 0.7bn 1%

Dec 07 13:00 Norway Details bond auction on 09 Dec

Dec 07 17:30 Italy Announces details of BTP/CCTeu on 11 Dec

Dec 08 11:30 UK 3.5% 2045 Gilt auction

Dec 08 19:00 US Holds 3-year note auction

Dec 09 11:03 Sweden Holds bond auction

Dec 09 11:05 Norway Holds bond auction

Dec 09 11:30 Germany Eur 3bn Dec 2017 Schatz

Dec 09 19:00 US Holds 10-year note auction

Dec 10 19:00 US Holds 30-year bond auction

Dec 11 11:10 Italy Auctions BTPs/CCTeus