European Equities: A Quiet Economic Calendar to Test Support Further
Thursday, 23rd September
Spanish GDP (QoQ) (Q2)
French Manufacturing PMI (Sep) Prelim
French Services PMI (Sep) Prelim
German Manufacturing PMI (Sep) Prelim
German Services PMI (Sep) Prelim
Eurozone Manufacturing PMI (Sep) Prelim
Eurozone Markit Composite PMI (Sep) Prelim
Eurozone Services PMI (Sep) Prelim
Friday, 24th September
German Ifo Business Climate Index (Sep)
It was a particularly bearish start to the week for the European majors on Monday.
The DAX30 slid by 2.31% to lead the way down, with the CAC40 and the EuroStoxx600 seeing losses of 1.74% and 1.67% respectively.
Economic data on the day was limited to wholesale inflation figures from Germany, which had a muted impact on the majors.
The lack of stats left the markets with little to avert attention away from Wednesday’s FOMC policy decision and projections.
Following Friday’s pullback, dip buyers remained on the sidelines, with FED policy uncertainty testing support for the majors.
Adding to the market angst on the day was the Evergrande crisis, which sparked contagion fears across the global financial markets.
It’s a was a quiet day on the Eurozone economic calendar. In August, Germany’s annual wholesale rate of inflation picked up from 10.4% to 12.0%. Economists had forecast an uptick to 11.4%. Month-on-month, Germany’s producer price index rose by 1.5%, following a 1.9% increase in July. Economists had forecast a more modest 0.8% increase.
From the U.S
It was also a particularly quiet day on the economic calendar, with no major stats for the markets to consider.
The Market Movers
For the DAX: It was a bearish day for the auto sector on Monday. Continental tumbled by 5.59% to lead the way down, with Volkswagen sliding by 3.89%. BMW and Daimler weren’t far off, however, with losses of 2.73% and 2.68% respectively.
It was also a bearish day for the banks. Deutsche Bank and Commerzbank slumped by 7.67% and by 7.92% respectively.
From the CAC, it was a bearish day for the banks. Soc Gen and BNP Paribas slid by 5.70% and by 4.46% respectively, with Credit Agricole falling by 3.86%.
It was also a bearish day for the French auto sector. Stellantis NV slid by 4.47%, with Renault falling by 2.19%.
Air France-KLM bucked the trend, rallying by 5.31%, while Airbus SE slipped by 0.97%.
On the VIX Index
It was a 3rd consecutive day in the green for the VIX on Monday.
Following an 11.34% jump on Friday, the VIX surged by 23.55% to end the day at 25.71.
On Monday, the NASDAQ slid by 2.19%, with the Dow and S&P500 ending the day down by 1.78% and by 1.70% respectively.
The Day Ahead
It’s another particularly quiet day ahead on the Eurozone’s economic calendar.
There are no major stats to provide the European majors with direction at the start of the week.
From the U.S there are also no major stats to consider later in the session, leaving the markets in limbo ahead of Wednesday’s FOMC.
In the futures markets, at the time of writing, the Dow Mini was up by 4 points.
For a look at all of today’s economic events, check out our economic calendar.