European Equities: A Quiet Economic Calendar Leaves the Majors in the Hands of the U.S Markets

The Majors

It was a bearish day for the European majors on Friday, following a 7-month winning streak coming to an end in September.

The CAC40 slipped by 0.04%, with the EuroStoxx600 and the DAX30 ending the day down by 0.53% and by 0.68% respectively.

A busy economic calendar failed to deliver support once more, with manufacturing sector PMI figures from the Eurozone revised downwards.

Adding to the market angst was a pickup in Eurozone inflationary pressure, according to prelim September figures.

From the U.S, positive personal spending and manufacturing sector PMIs also failed to deliver support. Persistent inflationary pressures well above the FED’s target continued to support a near-term move by the FED.

The Stats

Spain’s Manufacturing PMI fell from 59.5 to 58.1, with Italy’s down from 60.9 to 59.7 in September.

France and Germany’s PMIs were revised down from prelims, leaving the Eurozone PMI down from 58.7 to 58.6.

Prelim inflation figures pointed to a further pickup in inflationary pressure at the end of the 3^rd quarter.

In September, the Eurozone’s annual rate of inflation accelerated from 3.0% to 3.4%, raising further questions over the ECB’s transitory view.

From the U.S

In September, the ISM Manufacturing PMI rose from 59.9 to 61.1, with personal spending up 0.8% in August. Personal spending had fallen by 0.1% in July.

Month-on-month, the Core PCE Price Index rose by 0.3% following a 0.3% increase in July. Year-on-year, the index increased by 3.6% after having been up by 3.6% in July.

The Market Movers

For the DAX: It was a mixed day for the auto sector on Friday. Continental slid by 2.16% to lead the way down, with Volkswagen falling by 0.55%. BMW and Daimler saw modest gains of 0.43% and 0.08% respectively, however.

It was a bearish day for the banks. Deutsche Bank and Commerzbank slid by 2.71% and by 2.47% respectively.

From the CAC, it was a bearish day for the banks. BNP Paribas and Soc Gen fell by 0.99% and by 0.86% respectively, with Credit Agricole declining by 1.07%.

It was a mixed day for the French auto sector. Stellantis NV ended the day down by 1.54%, while Renault rose 0.16%.

Air France-KLM partially recovered Thursday’s 7.52% slide with a 1.75% gain, with Airbus SE rising by 1.29%.

On the VIX Index

It was a back into the red for the VIX on Friday, marking the 2^nd fall of the week.

Reversing a 2.57% rise from Thursday, the VIX fell by 8.60% to end the day at 21.15.

The NASDAQ rose by 0.82%, with the Dow and S&P500 ending the day up by 1.43% and by 1.15% respectively.