European Equities: A Quieter Economic Calendar to Put Support to the Test
Friday, 17th September
Eurozone Core CPI (YoY) (Aug) Final
Eurozone CPI (MoM) (Aug) Final
Eurozone CPI (YoY) (Aug) Fina
It was a relatively bullish day for the European majors on Thursday.
The CAC40 and the EuroStoxx600 rose by 0.59% and 0.44% respectively, with the DAX30 ending the day up by 0.23%.
While economic data from the Eurozone provided direction, stats from the U.S were key later in the European session.
Impressive economic data from the U.S, which included an unexpected rise in retail sales, delivered the majors with support.
Following softer inflation figures for August, Thursday’s numbers also included a marked jump in the Philly FED Manufacturing PMI.
All in all, the numbers eased concerns over the economic recovery, which had returned following weak numbers from China on Wednesday.
It’s a was a quiet day on the Eurozone economic calendar.
Eurozone trade data was in focus early in the European open.
In July, the Eurozone’s trade surplus widened from €17.7bn to €20.7bn.
According to Eurostat,
- Euro area exports of goods to the rest of the world increased by 11.4%, year-on-year, to €206.0bn.
- Imports from the rest of the world jumped by 17.1% to €185.3bn.
- Intra-euro area trade rose by 16.8%, year-on-year, to €179.7bn.
From the U.S
It was a busy day on the economic calendar. Retail sales, jobless claims, and manufacturing data were in focus.
In August, retail sales increased by 0.7% versus a forecasted 0.2% decline. Core retail sales jumped by 1.8% versus a 0.1% decline. In July retail sales had fallen by 1.1% and core retail sales by 0.4%.
Manufacturing numbers were also upbeat, with the Philly FED Manufacturing PMI increasing from 19.4 to 30.7 in September.
Jobless claims figures failed to impress, however, with sub-300k remaining elusive. In the week ending 10th September, initial jobless claims rose from 312k to 332k. Economists had forecast an increase to 330k.
The Market Movers
For the DAX: It was a bearish day for the auto sector on Thursday. Volkswagen fell by a 1.46%, with BMW and Daimler seeing losses of 1.15% and 0.84% respectively. Continental led the way down, however, tumbling by 15.98%. Continental’s slide came in response to the Vitesco unit spinoff.
It was a bullish day for the banks. Deutsche Bank and Commerzbank rose by 1.00% and by 0.82% respectively.
From the CAC, it was a bullish day for the banks. Soc Gen and Credit Agricole ended the day up by 0.50% and by 0.29% respectively. BNP Paribas led the way, however, gaining 0.99%.
It was a mixed day for the French auto sector. Stellantis NV rose by 0.40%, while Renault fell by 1.69%.
Air France-KLM ended the day up by 1.81%, with Airbus SE rallying by 2.24%.
On the VIX Index
It was back into the green for the VIX on Thursday, marking a 4th daily gain in 6 sessions.
Partially reversing a 6.58% fall from Wednesday, the VIX rose by 2.81% to end the day at 18.69.
On Thursday, the NASDAQ rose by 0.13%, while the Dow and S&P500 ended the day down by 0.18% and by 0.16% respectively.
The Day Ahead
It’s a relatively quiet day ahead on the Eurozone’s economic calendar.
Finalized August inflation figures for the Eurozone are due out later today. Expect any upward revisions to influence.
From the U.S, consumer sentiment figures for September will also provide direction late in the European session.
In the futures markets, at the time of writing, the Dow Mini was down by 10 points.
For a look at all of today’s economic events, check out our economic calendar.