European Equities: A Quiet Economic Calendar Leaves Stats From China and the U.S in FocusIt’s a quiet day ahead on the European economic calendar, with stats limited to inflation figures from Italy that should have a muted impact on the majors.
Monday, 17th May
Italian CPI (MoM) (Apr) Final
Tuesday, 18th May
Eurozone GDP (YoY) (Q1) – 2nd Estimate
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Eurozone GDP (QoQ) (Q1) – 2nd Estimate
Eurozone Trade Balance (Mar)
Wednesday, 19th May
Eurozone Core CPI (YoY) (Apr) Final
Eurozone CPI (MoM) (Apr) Final
Eurozone CPI (YoY) (Apr) Final
Friday, 21st May
French Manufacturing PMI (May) Prelim
French Services PMI (May) Prelim
German Manufacturing PMI (May) Prelim
German Services PMI (May) Prelim
Eurozone Manufacturing PMI (May) Prelim
Eurozone Markit Composite PMI (May) Prelim
Eurozone Services PMI (May) Prelim
It was a bullish end to the week for the European majors on Friday, with the DAX30 and CAC40 managing to reverse losses from earlier in the week.
The CAC40 and the DAX30 rose by 1.54% and by 1.43% respectively, with the EuroStoxx600 ending the day up by 1.19%.
There were no major stats from the Eurozone to provide the majors with direction at the end of the week.
Market optimism towards a sharp economic recovery returned as EU member states look to reopen borders for the summer.
From the U.S, while retail sales figures disappointed in April, record savings rates amongst consumers also pointed to a marked pickup in consumption down the road. This was coupled with further assurances by the FED that policy would remain unchanged near-term, which supported demand for riskier assets.
Economic data was limited to finalized April inflation figures from Spain that had a muted impact on the majors.
From the U.S
It was a busier day on the economic calendar on Friday. Retail sales, consumer sentiment, and industrial production figures were in focus.
It was a mixed bag on the data front.
Consumer sentiment weakened in May. According to prelim figures, the Michigan Consumer Sentiment Index fell from 88.3 to 82.8 with the consumer expectations index falling from 82.7 to 77.6.
Retail sales stalled in April, after having surged by 10.7% in March. Core retail sales unexpectedly fell by 0.8% after a 9% increase in March,
While the numbers were disappointing, an upward trend in the personal saving rate across the U.S suggests a marked pickup in spending in the months ahead.
This eased market concerns over a possible tightening of the purse strings through the summer. According to the bea, the personal saving rate jumped by 27.6% in March.
Industrial production was on the rise once more in April. Following a 2.4% increase in March, production was up 0.7%, month-on-month. Year-on-year, production was up 16.49%.
The Market Movers
For the DAX: It was a bullish day for the auto sector on Friday. BMW and Daimler rallied by 2.83% and by 2.71% respectively. Continental and Volkswagen weren’t far behind, ending the day with gains of 2.41% and 2.59% respectively.
It was also a bullish day for the banks. Deutsche Bank rose by 1.93%, with Commerzbank rallying by 3.65%.
From the CAC, it was a bullish day for the banks. BNP Paribas and Soc Gen ended the day up by 1.75% and by 1.56% respectively. Credit Agricole rose by a more modest 0.76% on the day.
It was also a bullish day for the French auto sector. Stellantis NV rose by 1.41%, with Renault rallying by 3.26%.
Air France-KLM and Airbus SE saw solid gains of 3.64% and 3.72% respectively.
On the VIX Index
It was a second consecutive day in the red for the VIX on Friday.
Following on from a 16.17% decline on Thursday, the VIX slid by 18.68% to end the day at 18.81.
The NASDAQ rallied by 2.32%, with the Dow and the S&P500 ending the day up by 1.06% and by 1.49% respectively.
The Day Ahead
It’s a particularly quiet day ahead on the European economic calendar. Finalized April inflation figures from Italy are due out.
We don’t expect the numbers to have a material impact on the majors.
From the U.S, NY Empire State Manufacturing figures for May will draw interest later in the day, however.
Ahead of the European open, fixed asset investment, industrial production, and retail sales figures from China will set the tone.
In the futures markets, at the time of writing, the Dow Mini down up by 23 points.
For a look at all of today’s economic events, check out our economic calendar.