Economic Calendar: Thursday, 18th February Eurozone Consumer Confidence (Flash) Friday, 19th February French CPI (MoM) (Jan) Final French HICP (MoM) (Jan)
Eurozone Consumer Confidence (Flash)
French CPI (MoM) (Jan) Final
French HICP (MoM) (Jan) Final
French Manufacturing PMI (Feb) Prelim
French Services PMI (Feb) Prelim
German Manufacturing PMI (Feb) Prelim
German Services PMI (Feb) Prelim
Italian CPI (MoM) (Jan) Final
Eurozone Manufacturing PMI (Feb) Prelim
Eurozone Markit Composite PMI (Feb) Prelim
Eurozone Services PMI (Feb) Prelim
It was a mixed day for the European majors on Tuesday. While the DAX30 and EuroStoxx600 fell by 0.32% and by 0.06% respectively, the CAC40 ended the day flat.
Economic data from early in the European session had provided support to the majors before a pullback later in the day.
While optimism towards the economic outlook continues to support the European majors and the broader markets, a degree of uncertainty also lingers.
Containment measures remain in place as the EU progresses on the vaccination front. Until restrictions are removed the economic uncertainty will likely remain.
It was a relatively busy day on the economic calendar. Economic data included 2nd estimate GDP numbers for the Eurozone and ZEW economic sentiment figures for Germany and the Eurozone.
According to 2nd estimates, the Eurozone economy contracted by 0.6% in the 4th quarter. This was an upward revision from a 1st estimate 0.7% contraction.
Year-on-year, the economy contracted by 5.0%, which was also an upward revision from a 1st estimate 5.1% contraction.
According to Eurostat,
Germany’s ZEW Economic Sentiment Index rose from 61.8 to 71.2 for February. Economists had forecast a fall to 59.6.
The upside came in spite of sentiment towards current conditions fell deeper into the red. For February, the ZEW Current Conditions Index fell from -66.4 to -67.2. Economists had forecast a decline to -67.0.
For the Eurozone, the Economic Sentiment Index jumped from 58.3 to 69.8.
Key stats included NY Empire State Manufacturing Index figures.
In February, the NY Empire State Manufacturing Index increased from 3.5 to 12.1. Economists had forecast a rise to 6.0.
For the DAX: It was mixed day for the auto sector on Wednesday. BMW and Volkswagen saw modest gains of 0.08% and 0.02% respectively. Continental and Daimler, however, ended the day down by 1.06% and by 0.20% respectively.
It was another bullish day for the banks. Deutsche Bank rallied by 2.03%, with Commerzbank rising by 0.69%.
From the CAC, it was a relatively bullish day for the banks. BNP Paribas and Soc Gen rose by 0.13% and by 0.03% respectively, with Credit Agricole gaining 0.54%.
It was also a bullish day for the French auto sector, however. Stellantis NV rose by 0.94%, with Renault gaining 1.18%.
Air France-KLM slipped by 0.18%, while Airbus SE rose by 0.14%.
It was back into the green for the VIX on Tuesday. Reversing a 6.02% fall from Friday, the VIX rose by 7.46% to end the day at 21.46.
The NASDAQ and the S&P500 fell by 0.06% and by 0.34% respectively, while the Dow gained 0.20%.
It’s a quiet day ahead on the European economic calendar. There are no material stats from the Eurozone to provide the majors with direction.
The lack of stats will leave the majors in the hands of U.S stats and chatter from Capitol Hill.
From the U.S, wholesale inflation and retail sales figures are due out. Expect January’s retail sales figures to have an impact on the majors late in the session.
Chatter from Capitol Hill will also need continued monitoring.
Overnight, the FOMC meeting minutes are also due out. There could be some caution ahead of the minutes. FED Chair Powell has continued to assure the markets that accommodative measures will remain for an extended period of time. The minutes will need to be aligned…
In the futures markets, at the time of writing, the Dow Mini was up by 9 points.
For a look at all of today’s economic events, check out our economic calendar.
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.