European Equities: Can They Make it 6-in-a-row? The Futures Say No…

Trade data out of Germany and corporate earnings are in focus, with trade data out of China to set the tone earlier in the day.
Bob Mason
Businessman touching stock market graph on a virtual screen display.

Economic Calendar:

Friday, 8th November

  • German Trade Balance (Sep)
  • French Non-Farm Payrolls (QoQ) (Q3)

The Majors

It was another bullish day for the European majors, which saw their 5th consecutive day in the green. The DAX30 led the way, rising by 0.84%, with the CAC40 and EuroStoxx600 up by 0.41% and by 0.37% respectively.

While economic data continued to disappoint, positive updates from the ongoing U.S – China trade talks provided support.

News of both the U.S and China agreeing to roll back a portion of existing tariffs as part of the Phase 1 agreement delivered the upside.

The Stats

It was a relatively quiet day on the Eurozone economic calendar on Thursday. Key stats from the Eurozone was limited to German industrial production figures for September.

According to Destatis,

  • Industrial production fell by 0.6% in September, month-on-month, reversing a 0.3% rise in August. Economists had forecast a fall of 0.4%.
  • Production in industry excluding energy and construction fell by 1.3%.
  • Within industry, the production of intermediate goods fell by 1.3% and the production of capital goods by 1.5%.
  • The production of consumer goods fell by a more modest 0.5%.
  • Outside industry, energy production rose by 2.0%, with the production in construction up by 1.8%.
  • Year-on-year, production fell by 4.3%.

The Market Movers

For the DAX: It was a bullish day for the auto sector, as the markets brushed aside yet more negative data out of Germany. Daimler and Volkswagen led the way, rallying by 2.39% and by 2.38% respectively. BMW and Continental also made solid gains, rising by 1.38% and by 1.66% respectively.

It was mixed for the banks, however. While Deutsche Bank rallied by 2.26%, Commerzbank fell by 0.16%.

Commerzbank saw red as the bank cut its full-year profit outlook for 2019 on Thursday.

From the CAC, bank stocks found support. Credit Agricole led the way, rallying by 3.37%. Soc Gen and BNP Paribas also saw solid gains, rising by 2.85 % and by 2.95% respectively.

It was also a mixed day for the autos, however. While Peugeot ended the day flat, Renault rose by 2.83%.

On the VIX Index

The VIX Index rose by 0.87% on Thursday. Partially reversing a 3.66% decline from Wednesday, the VIX ended the day at 12.7

Support kicked in late in the day as the U.S majors gave up some of their gains from earlier in the day.

The upside came in spite of news hitting the wires of the U.S and China finding common ground on how to remove tariffs.

The Day Ahead

It’s a relatively quiet day ahead on the Eurozone economic calendar. Key stats due out of the Eurozone include German trade data for September and 3rd quarter nonfarm payroll figures out of France.

Barring dire numbers, Germany’s trade data will likely have the greatest influence.

Chatter from the gathering of EU finance ministers will also need monitoring on the day.

Ahead of the European session, October trade data out of China will set the tone. While forecasts are for the trade surplus to widen, both exports and imports are forecasted to slide. Worse than forecasts would place pressure on the majors at the open.

From the U.S, prelim consumer sentiment figures for November will likely have a muted impact on the European majors late in the session.

On the geopolitical risk front, we can expect any chatter on trade and UK politics to also provide direction throughout the day.

Corporate earnings will also be in focus on the day. Credit Agricole earnings results will likely garner plenty of attention.

In the futures market, at the time of writing, the DAX30 was down by 17.5 points, with the Dow down by 32 points.

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

Latest Articles

See All

Expand Your Knowledge

See All
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.