It's a quiet day ahead on the economic calendar, with French consumer confidence and Italian business confidence in focus. ECB President Lagarde and ECB members could also influence, however.
It was a bullish day for the European majors on Thursday.
The EuroStoxx600 and CAC40 rose by 0.42% and by 0.48% respectively, with the DAX30 ending the day up by 0.25%.
Disappointing economic data from Germany pegged back the DAX30 on the day, with COVID-19 news also a drag on the day.
A continued rise in new COVID-19 cases across Europe has led to more restrictions, with more lockdown measures a continued threat following Austria’s lockdown last week.
On the monetary policy front, however, ECB sentiment towards inflation and policy provided the major with support.
Following November’s prelim private sector PMIs and German business sentiment numbers, GDP and consumer sentiment figures from Germany were in focus this morning.
In the 3rd quarter, the German economy expanded by 1.7% quarter-on-quarter, according to 2nd estimate figures. This was down from a prelim 1.8% and a 2nd quarter 2.0%.
According to Destatis,
Consumer sentiment figures also disappointed, with the GfK consumer climate index falling from +1.0 to -1.6. Economists had forecast a decline to -0.5.
According to the November survey,
Inflation remained a hot topic for the ECB, with the minutes revealing plenty of uncertainty ahead.
Salient points from the ECB’s monetary policy stance and policy considerations included:
There were no major stats to consider, with the U.S markets closed for Thanksgiving.
For the DAX: It was a bearish day for the auto sector on Thursday. BMW slid by 1.34% to lead the way down, with Continental falling by 1.04%. Volkswagen and Daimler ended the day with relatively modest losses of 0.10% and 0.05% respectively.
It was a mixed day for the banks. Deutsche Bank rose by 0.66%, while Commerzbank fell by 0.58%.
From the CAC, it was a mixed day for the banks. Credit Agricole slipped by 0.36%, while BNP Paribas and Soc Gen saw gains of 0.32% and 0.24% respectively.
The French auto sector also had a mixed session. Stellantis NV fell by 0.59%, while Renault ended the day up by 0.03%.
Air France-KLM rallied by 2.51%, however, with Airbus SE rising by 0.22%.
The U.S markets were closed on Thursday.
On Wednesday, the VIX had fallen by 4.13%, reversing a 1.10% gains from Tuesday to end the day at 18.58.
It’s a quiet day ahead on the Eurozone’s economic calendar. There are no material stats from the Eurozone to provide the majors with direction. The lack of major stats will put greater emphasis on French consumer confidence and Italian business confidence figures due out today.
On the monetary policy front, central bank chatter could move the dial, with ECB President Lagarde and ECB members Schnabel and Panetta scheduled to speak later in the day.
With the U.S markets on a shortened session for the Thanksgiving holidays, there are also no U.S stats to consider later in the day.
Away from the economic calendar, however, COVID-19 news and commodity prices will draw interest, however.
In the futures markets, at the time of writing, the Dow Mini was flat.
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.