A quiet economic calendar to leave the majors in the hands of inflation and central bank chatter. Expect some influence from the U.S markets.
German ZEW Current Conditions (Oct)
German ZEW Economic Sentiment (Oct)
ZEW Economic Sentiment (Oct)
German CPI (MoM) (Sep) Final
Eurozone Industrial Production (MoM) (Aug)
Spanish CPI (YoY) (Sep) Final
Spanish HICP (YoY) (Sep) Final
French CPI (MoM) (Sep) Final
French HICP (MoM) (Sep) Final
Italian CPI (MoM) (Sep) Final
Eurozone Trade Balance (Aug)
It was a bearish end to the week for the European majors on Friday.
The CAC40 fell by 0.61%, with the DAX30 and the EuroStoxx600 seeing losses of 0.29% and 0.28% respectively.
While economic data from Germany disappointed once more, market concerns over inflation and weak U.S jobs data weighed most.
The German economy was back in focus at the end of the week.
In August, Germany’s trade surplus narrowed from €17.7bn to €13.0bn. Economists had forecast a narrowing to €15.8bn.
According to Destatis,
Trade with EU countries
Trade with Non-EU Countries
With other Countries
To China, exports rose by 4.4%, however, with exports to the U.S jumping by 22.4%.
Labor market figures were the key stats of the day, with the numbers disappointing.
In September, nonfarm payrolls increased by just 194k, falling well short of a forecasted 500k rise.
The unemployment rate fell from 5.2% to 4.8%, with a fall in the participation rate from 61.7% to 61.6% contributing.
For the DAX: It was a mixed day for the auto sector on Friday. Volkswagen bucked the trend, falling by 0.74%. Continental and Daimler rallied by 2.91% and by 2.34% respectively, however, to lead the way. BMW rose by a more modest 1.13%.
It was a bullish day for the banks. Deutsche Bank rose by 0.48%, with Commerzbank ending the day up by 1.07%.
From the CAC, it was a mixed day for the banks. BNP Paribas fell by 0.16%, while Credit Agricole and Soc Gen ended the day up by 0.30% and by 0.11% respectively.
It was a bullish day for the French auto sector, however. Stellantis NV rose by 0.62%, with Renault ending the day up by 2.33%.
Air France-KLM rose by 0.20%, while Airbus SE fell by 0.86%.
It was a 4th consecutive day in the red for the VIX on Friday.
Following a 6.95% fall on Thursday, the VIX declined by 3.94% to end the day at 18.77.
The NASDAQ fell by 0.51%, with the Dow and S&P500 ending the day down by 0.03% and by 0.19% respectively.
It’s a particularly quiet start to the week on the Eurozone’s economic calendar. There are no material stats due out of the Eurozone to provide the majors with direction.
From the U.S, there are also no major stats to provide direction later in the day.
The lack of stats will leave the majors in the hands of central bank chatter, crude oil prices, news updates from Capitol Hill, and geopolitics…
In the futures markets, at the time of writing, the Dow Mini was down by 58 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.