European Equities: A Quiet Economic Calendar Leaves Inflation and COVID-19 in Focus
Monday, 30th August
Spanish HICP (YoY) (Aug) Prelim
German CPI (MoM) (Aug) Prelim
Tuesday, 31st August
French Consumer Spending (MoM) (Jul)
French GDP (QoQ) (Q2)
German Unemployment Change (Aug)
German Unemployment Rate (Aug)
Italian CPI (MoM) (Aug) Prelim
Eurozone CPI (YoY) (Aug) Prelim
Wednesday, 1st September
German Retail Sales (MoM) (Jul)
Spanish Manufacturing PMI (Aug)
Italian Manufacturing PMI (Aug)
French Manufacturing PMI (Aug) Final
German Manufacturing PMI (Aug) Final
Eurozone Manufacturing PMI (Aug) Final
Eurozone Unemployment Rate (Jul)
Friday, 3rd September
Spanish Services PMI (Aug)
Italian Services PMI (Aug)
French Services PMI (Aug) Final
German Services PMI (Aug) Final
Eurozone Markit Composite PMI (Aug) Final
Eurozone Services PMI (Aug) Final
Eurozone Retail Sales (MoM) (Jul)
It was a relatively bullish end to the week for the European majors on Friday.
The CAC40 rose by 0.24%, with the DAX30 and the EuroStoxx600 ending the day up by 0.37% and by 0.43% respectively.
There were no major stats from the Eurozone to provide the majors with direction early in the European session.
Economic data from the U.S also took a back seat, with the markets awaiting FED Chair Powell’s scheduled speech late in the day.
A dovish stance on monetary policy delivered support for the majors on the day, with Powell closing the door on any near-term talk of rate hikes.
There were no major stats from the Eurozone.
From the U.S
Inflation and personal spending figures delivered mixed results ahead of FED Chair Powell’s scheduled speech.
In July, the Core PCE Price Index increased by 3.6%, year-on-year, with the index rising by 0.3%, month-on-month. In June, the index had also risen by 3.6% year-on-year, while having risen by 0.5%, month-on-month. The numbers were in line with forecasts.
Personal spending saw a modest 0.3% increase in July, however, after having risen by 1.1% in June. Economists had also forecast a 0.3% rise.
The Market Movers
For the DAX: It was a bullish day for the auto sector on Friday. Continental and Daimler ended the day up by 0.84% and by 0.87% respectively, with BMW rising by 0.17%. Volkswagen saw a modest 0.05% increase on the day.
It was a bearish day for the banks, however. Deutsche Bank and Commerzbank fell by 0.61% and by 0.42% respectively.
From the CAC, it was a mixed day for the banks. BNP Paribas and Credit Agricole fell by 0.39% and by 0.07% respectively, while Soc Gen rose by 0.32%.
It was a bullish day for the French auto sector. Stellantis NV and Renault saw gains of 0.20% and 0.58% respectively.
Air France-KLM fell by 0.52%, while Airbus SE ended the day up by 0.02%.
On the VIX Index
It was back into the red for the VIX on Friday.
Reversing a 12.21% jump from Thursday, the VIX slid by 13.00% to end the day at 16.39.
The NASDAQ rallied by 1.23%, with the Dow and the S&P500 ending the day up by 0.69% and by 0.88% respectively.
The Day Ahead
It’s a relatively quiet day ahead on the Eurozone’s economic calendar. Prelim August inflation figures for Spain and Germany will be in focus.
Softer numbers would deliver the majors with support on the day.
From the U.S, pending home sales numbers are due out late in the day but should have a muted impact on the majors.
Away from the economic calendar, COVID-19 news updates from the weekend will also need considering.
In the futures markets, at the time of writing, the Dow Mini was up by 15 points.
For a look at all of today’s economic events, check out our economic calendar.