FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
95,484,228Confirmed
2,039,692Deaths
68,169,959Recovered
Fetching Location Data…
Advertisement
Advertisement
Bob Mason
Businessman touching stock market graph on a virtual screen display.

Economic Calendar:

Thursday, 23rd January 2020

ECB Monetary Policy Decision and Press Conference

Eurozone Consumer Confidence Prelim

Advertisement
Know where the Market is headed? Take advantage now with 

75% of retail CFD investors lose money

Friday, 24th January 2020

French Manufacturing PMI (Jan) Prelim

French Services PMI (Jan) Prelim

German Manufacturing PMI (Jan) Prelim

German Services PMI (Jan) Prelim

German IFO Business Climate Index

Eurozone Manufacturing PMI (Jan) Prelim

Eurozone Markit Composite PMI (Jan) Prelim

Eurozone Services PMI (Jan) Prelim

ECB President Lagarde Speaks

Advertisement

The Majors

It was a mixed day for the European majors on Tuesday, with the CAC40 and EuroStoxx600 falling by 0.54% and by 0.14% respectively. The DAX30 bucked the trend on the day, rising by 0.05%.

Economic data provided limited support on the day, as the markets reacted to some alarming news over the Coronavirus that took yet another victim and reached new shores.

An affirmation of person to person transfer of the virus also raised the chances of a SARS repeat that punished the Asian markets back in 2003.

Airline, hotel and other tourism-related stocks will likely struggle near-term and could slide into the abyss should China fail to contain the spread.

China hits planes, trains, and automobiles on Friday, as millions travel across the globe for the Chinese NY. With the virus now detected in Beijing, Shanghai, and Shenzhen, the prospects of a global outbreak spiked on Tuesday.

The Stats

It was a relatively busy day on the Eurozone economic calendar on Tuesday. Key stats included the ZEW economic sentiment figures out of Germany and the Eurozone for January.

While the majors saw red on the day, the sentiment numbers were positive.

Germany’s ZEW economic sentiment index rose from 10.70 to 26.70, with the Eurozone’s sentiment index rising from 11.20 to 25.6. Both sets of numbers came in well ahead of forecasts.

While the impact on the majors was muted, it is worth noting that Germany’s Sentiment Index hit levels not seen since 2015.

The upside was attributed to the phase 1 trade agreement between the U.S and China. Any hint of tariffs on Germany and expect a reversal…

From the U.S, there were no major stats to provide direction on the day, though even U.S numbers would have had a muted impact on the day.

The Market Movers

For the DAX: It was a bearish day for the auto sector. Continental tumbled by 2.65%, with Daimler and Volkswagen falling by 1.39% and by 1.14% respectively.

It was a mixed day for the banks, however, with Commerzbank falling by 0.54%, while Deutsche Bank gained 0.30% on the day.

Lufthansa was the worse performer on the day, sliding by 4.25%.

From the CAC, it was also a bearish day for the banks. BNP Paribas fell by 0.55%, with Credit Agricole and Soc Gen down by 0.35% and by 0.52% respectively.

Things were not much better for the French auto sector, with Peugeot and Renault falling by 1.21% and by 0.78% respectively.

On the VIX Index

Market jitters over the spread of the Coronavirus provided the VIX with support on Tuesday. After a 1.79% fall on Friday, the VIX rose by 6.20% on Tuesday.

The Day Ahead

It’s a particularly quiet day on the Eurozone economic calendar. There are no material stats due out of the Eurozone to provide direction to the majors.

While chatter from Davos will influence, virology remains the key area of focus. A lot can happen in  matter of hours. Expect any new cases in new geographies to weigh on risk appetite.

SARS was largely confined to Asia, this one could become a Spanish flu event. A lot of unknowns remain, including the incubation period. When considering the fact it has already spread to the U.S, the outbreak could have started well before initial reports were made.

Ahead of the European open, the Asian markets managed to avoid another pullback though the markets remain susceptible to the news wires.

In the futures markets, at the time of writing, the DAX was up by 17.5 points, with the Dow up by 24 points.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US