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European Equities: A Quiet Economic Calendar to Test Support
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There are no major stats due out to provide the majors with direction, which could test support. U.S futures point to a positive open, however.
Economic Calendar
Wednesday, 9th February
German Trade Balance (Dec)
Thursday, 10th February
EU Economic Forecasts
The Majors
It was a bullish start to the week for the European majors on Monday. The DAX rose by 0.71%, with the CAC40 and the EuroStoxx600 gaining 0.83% and 0.81% respectively.
Economic data took a back seat following last Friday’s sell-off, despite an unexpected fall in German industrial production.
Dip buyers jumped in to deliver support, though the upside on the day was modest. Friday’s solid nonfarm payroll figures and a more hawkish ECB pegged the majors back.
The Stats
It was a relatively quiet Eurozone economic calendar. Key stats included German industrial production figures for December. Following a string of upbeat stats from Germany, economists had forecast a 0.4% increase to reverse a prelim 0.2% decline from November.
German Industrial Production
In December, German industrial production fell by 0.3%, month-on-month.
According to Destatis,
- Production in industry excluding energy and construction was up 1.2%.
- Within industry, the production of capital goods jumped by 2.5%.
- Intermediate goods saw a more modest 0.6% rise, while consumer goods production fell by 0.5%.
- Outside of industry, energy production fell by 0.7%, with production in construction sliding by 7.3%.
- According to finalized figures, production increased by 0.3% in November.
- Production in 2021 was 3.0% higher than in 2020 and 5.5% lower than in the pre-crisis year of 2019.
From the U.S
There were no major stats from the U.S to influence late in the European session.
The Market Movers
For the DAX: It was a mixed day for the auto sector on Monday. Daimler and Volkswagen fell by 0.40% and by 0.11% respectively. BMW and Continental ended the day with gains of 0.22% and 1.49% respectively, however.
It was also a mixed day for the banks. Deutsche Bank rose by 0.88%, while Commerzbank slipped by 0.01%.
From the CAC, it was a bullish day for the banks. Credit Agricole and Soc Gen saw gains of 0.66% and by 1.34% respectively, with BNP Paribas ending the day up by 2.16%.
The French auto sector also had a mixed session. Stellantis NV slid by 3.55%, while Renault rose by 1.24%.
Air France-KLM and Airbus SE ended the day with gains of 2.63% and 2.37% respectively on the day.
On the VIX Index
It was a 2nd consecutive day in the red for the VIX on the Monday.
Following a 4.64% fall on Friday, the VIX declined by 1.55% to end the day at 22.86.
The Dow ended the day flat, while the S&P500 and the NASDAQ saw losses of 0.37% and 0.58% respectively.
The Day Ahead
It’s a particularly quiet day ahead on the Eurozone’s economic calendar. There are no material stats due out of the Eurozone to provide the majors with direction. The lack of stats will put a greater emphasis on second tier stats due out, which include French trade and Italian retail sales figures.
From the U.S, trade data for December is due out later in the day but should have a muted impact on the majors.
Away from the economic calendar, news updates from Russia and the West on the Ukraine will need monitoring.
The Futures
In the futures markets, at the time of writing, the Dow Mini was up by 36 points.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Bob Masonauthor
With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.
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