Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Bob Mason
Global financial markets

Economic Calendar:

Friday, 5th December 2019

  • German Industrial Production (MoM) (Oct)

The Majors

It was a mixed day for the European majors on Thursday. The CAC40 bucked the trend on the day, eking out a 0.03% gain. It was bearish for the DAC30 and EuroStoxx600, however, which fell by 0.65% and by 0.13% respectively.

There was conflicting news on trade once more. While there were reports of the U.S and China inching closer to a phase 1 agreement, Trump had said that he may wait until after next year’s presidential election.

Know where the Market is headed? Take advantage now with 

75% of retail CFD investors lose money

Uncertainty on the trade front and disappointing economic data out of Germany and the Eurozone pressured the majors on the day.

The Stats

It was a relatively busy day on the Eurozone economic calendar on Thursday. Key stats included the Eurozone’s 3rd quarter finalized GDP numbers and October retail sales figures. In the early part of the day, German factory order figures for October also provided direction.

While GDP numbers were in line with 2nd estimates, factory orders and retail sales figures pressured the majors on the day.

According to Destatis, German factory orders fell by 0.4% in October, partially reversing a revised 1.5% increase in September. Economists had forecast a 0.3% rise.

  • Domestic orders slid by 3.2%, while foreign orders rose by 1.5%, month-on-month.
  • New orders from the Eurozone jumped by 11.1%, while new orders from other countries slid by 4.1%.
  • Orders for intermediate goods increased by 0.7%, with orders for consumer goods rising by 0.3%.
  • Manufacturers reported that orders for capital goods slid by 1.1%, however.
  • Year-on-year, factory orders fell by 5.5%.

From the Eurozone, retail sales fell by 0.6% in October, following on from a 0.2% decline in September. Economists had forecast a 0.3% decline.

According to Eurostat,

  • Non-food product sales fell by 1.1%, while food, drinks and tobacco sales increased by 0.3%
  • Automotive fuel sales rose by 0.6%.
  • By member state, Germany and Ireland reported the largest fall in sales, both sliding by 1.9%.
  • Portugal reported the largest increase, with a 2.1% jump in sales.
  • Year-on-year, sales increased by 1.4%, with Malta reporting a 5.1% jump in sales.

From the U.S,

From the U.S, economic data failed to provide support in spite of positive numbers. The trade deficit narrowed, jobless claims fell to a 7-month low and factory orders were on the rise.

The Market Movers

For the DAX: It was a mixed day for the auto sector. BMW and Volkswagen rose by 0.19% and by 0.08% respectively. Continental and Daimler fell by 0.56% and by 0.67% respectively.

It was also a mixed day for the banks. Deutsche Bank fell by 0.42%, while Commerzbank rose by 0.81%.

From the CAC, it was a mixed day for the banks. Soc Gen led the way, rising by 0.83%, with Credit Agricole up by 0.32%. BNP Paribas bucked the trend, falling by 0.06%.

Mixed sentiment towards trade weighed on the French Auto sector, however. Peugeot and Renault fell by 1.03% and by 1.85% respectively.

On the VIX Index

The VIX saw red for a 2nd consecutive day, falling by 1.89% on Thursday. Following on from a 7.27% slide from Wednesday, the VIX ended the day at 14.5.

The 2nd day in the red came as the U.S equity markets recovered losses from earlier in the day.

Trade continued to be the main area of focus, with the markets expecting the U.S to hold back from rolling out tariffs on 15th December.

On the data front, positive jobless claims figures in the wake of Wednesday’s ADP nonfarm employment change figures were also negative for the VIX.

The Day Ahead

It’s a relatively quiet day ahead on the Eurozone economic calendar. Key stats due out of the Eurozone are limited to industrial production figures due out of Germany.

While we can expect the numbers to provide direction, trade noise will likely continue to overshadow the stats.

From the U.S, we can certainly expect some impact, with nonfarm payrolls, unemployment figures and wage growth numbers due out.

Anything close to the ADP numbers from Wednesday and expect risk appetite to take a hit.

Late in the European session, prelim Michigan consumer sentiment and expectation figures are also due out. Barring any major moves, however, the impact will likely be limited.

In the futures market, at the time of writing, the DAX30 was up by 31.5 points, with the Dow up by 36 points.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.