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European Equities: A Quiet Economic Calendar Leaves COVID-19 and Earnings in Focus
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After a bullish end to last week, a lack of stats could provide further support as the markets prep for earnings season. The delta variant and economic uncertainty could test support, however.
In this article:
Economic Calendar
Tuesday, 13th July
German Inflation Rate YoY Final JUN
German Inflation Rate MoM Final JUN
French Inflation Rate YoY Final JUN
French Inflation Rate MoM Final JUN
Wednesday, 14th July
Spain Harmonized Inflation Rate YoY Final JUN
Spain Inflation Rate YoY Final JUN
Eurozone Industrial Production MoM MAY
Thursday, 15th July
Italy Inflation Rate MoM Final JUN
Friday, 16th July
Eurozone Balance of Trade MAY
Eurozone Inflation Rate Final JUN
The Majors
It was a particularly bullish end to the week for the European majors on Friday.
The CAC40 rallied by 2.07%, with the DAX30 and the EuroStoxx600 ending the day with gains of 1.73% and 1.34% respectively.
Following a string of disappointing stats from Germany in the week, a quiet day on the economic calendar delivered support.
The lack of stats allowed bargain hunters to jump back in following Thursday’s sell-off.
In spite of the rebound, the continued spread of the Delta variant and a more murky economic outlook remain downside risks to the majors.
With the 2nd quarter having come to an end, however, attention will be shifting to corporate earnings, which should be market risk positive.
The Stats
It was a particularly quiet day, with no material stats from the Eurozone.
From the U.S
It was also a quiet day on the U.S economic calendar. There were no majors stats from the U.S to spook the markets late in the European session.
The Market Movers
For the DAX: It was a bullish day for the auto sector on Friday. Volkswagen surged by 6.18%, with BMW and Daimler ending the day up by 3.42% and by 2.72% respectively. Continental rose by a more modest 1.21%.
It was also a bullish day for the banks. Deutsche Bank and Commerzbank saw gains of 4.03% and 2.13% respectively.
From the CAC, it was a bullish day for the banks. BNP Paribas and Credit Agricole rose by 2.44% and by 2.49% respectively, with Soc Gen gaining 3.60%.
It was also a bullish day for the French auto sector. Stellantis NV and Renault ended the day up by 2.81% and 2.34% respectively.
Air France-KLM bucked the trend, falling by 0.83%, while Airbus SE rallied by 3.43%.
On the VIX Index
It was back into the red for the VIX on Friday, marking a 5th day in the red from 7-sessions.
Partially reversing a 17.28% jump from Thursday, the VIX slid by 14.84% to end the day at 16.18.
The Dow rallied by 1.30%, with the NASDAQ and the S&P500 ending the day up 0.98% and by 1.13% respectively.
The Day Ahead
It’s a particularly quiet day ahead on the economic calendar. There are no material stats to provide the majors with direction through the early part of the European session.
From the U.S, there are also no material stats to consider later in the day.
The lack of stats will leave the markets to consider the latest updates on the Delta variant of the coronavirus.
Late in the session, expect direction to come from the U.S majors, however, as the markets prep for earnings season, which kicks off this week.
The Futures
In the futures markets, at the time of writing, the Dow Mini was up by 2 points.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Bob Masonauthor
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.
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