While there are no stats from the Eurozone, U.S nonfarm payrolls are in focus later. There's also Brexit chatter and sentiment towards trade...
It was another day in the green for the European majors, with the DAX30 rallying by 1.31% to lead the way on Thursday.
The CAC40 and EuroStoxx600 also found support, rising by 0.19% and 0.31% respectively.
Easing market fears of a proxy war across the Middle East led the markets to switch focus to trade as the U.S and China prepare for phase 1 of the trade agreement.
The signing is next Wednesday and, with economic data out of the Eurozone on a more positive footing, hopes are for a turnaround in the Eurozone economy.
It was a relatively busy day on the Eurozone economic calendar on Thursday. Key stats included Germany’s November industrial production and trade figures and the Eurozone’s unemployment rate.
Industrial production rose by 1.1% in November, month-on-month, and coming in ahead of a forecasted 0.7% increase. In October, production had fallen by 1.0%.
According to Destatis,
Germany’s trade surplus narrowed from €20.4bn to €18.3bn in November. Economists had forecast a surplus of €20.0bn.
According to Destatis,
The Eurozone’s unemployment rate held steady at 7.5% in November, which was in line with forecasts. According to Eurostat,
Economic data was limited to the weekly jobless claims figures that had a muted impact on the majors.
For the DAX: It was a mixed day for the auto sector. BMW struggled on Thursday, falling by 0.73%. It was bullish for the rest, however, with Volkswagen and Continental rallying by 2.28% and 2.18% to lead the way. Daimler saw a more modest gain of 0.69%.
It was a relatively bullish day for the banks, with Commerzbank and Deutsche Bank rising by 0.39% and 0.09% respectively.
From the CAC, it was a mixed day for the banks. BNP Paribas fell by 0.72%, while Credit Agricole and Soc Gen ending the day up by 0.08% and by 0.05% respectively.
For the French auto sector, it was a bearish day, once more, with Peugeot and Renault falling by 0.24% and by 1.31% respectively.
Airline stocks found further support on Thursday. On the DAX30, Deutsche Lufthansa rallied by 2.69% to lead the 30, with Air France – KLM surging by 4.03%.
It was a 4th consecutive day in the red for the VIX, which fell by 6.77% on Thursday. Following on from a 2.47% decline on Wednesday, the VIX ended the day at 12.5.
There was little upside on the day as market jitters over the Middle East eased further. The U.S majors hit record highs on the day, with the S&P500 gaining 0.67% to leave the VIX in the red.
Positive sentiment towards trade and the economic outlook could see the VIX under more pressure should there be no further market shocks…
It’s a quiet day on the Eurozone economic calendar, with no material stats scheduled for release on the day.
The lack of stats will leave the focus on U.S labor market figures due out later in the day, Brexit chatter and any news from Washington or Tehran.
In the futures markets, at the time of writing, the DAX30 and the Dow were both up by 60 points.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.