European Equities: China PMI Figures to Set the Tone as 2021 Comes to an End

The Majors

It was a bullish day for the European majors on Thursday, marking a 6^th rise from 7 sessions for the EuroStoxx600 and the DAX30.

The DAX30 rose by 0.21%, with the CAC40 and the EuroStoxx600 ending the day up by 0.16% and by 0.15% respectively.

Economic data from the Eurozone and the U.S drew interest on the day.

Market fears of another economic meltdown, stemming from the Omicron strain, continued to abate. This was supported by news of some governments in Europe holding back on introducing stricter containment measures. A marked increase in new COVID-19 cases across the EU and beyond pegged the majors back, however.

Positive vaccine updates also delivered support as results from studies on efficacy continued to roll out. According to Reuters, Johnson & Johnson reported that a booster dose of the J&J vaccine was 84% effective at preventing hospitalization.

The Stats

Spain’s annual rate of inflation accelerated from 5.5% to 6.7% in December, based on prelim figures.

From the U.S

Jobless claims and Chicago PMI were in focus late in the European session.

In the week ending 24^th December, initial jobless claims fell from 206k to 198k. Economists had forecast an increase to 208k.

In December, the Chicago PMI increased from 61.8 to 63.1, which was also market positive. Economists had forecast a rise to 62.0.

The Market Movers

For the DAX: It was a mixed day for the auto sector on Thursday. Volkswagen rose by 0.16% to buck the trend. BMW and Daimler fell by 0.80% and by 0.94% respectively, however, with Continental ending the day down by 0.19%.

It was a bearish end to the year for the banks. Deutsche Bank and Commerzbank declined by 0.85% and by 0.42% respectively.

From the CAC, it was a mixed day for the banks. Credit Agricole rose by 0.29%, while BNP Paribas and Soc Gen ended the day down by 0.07% and by 0.12% respectively.

The French auto sector also had a mixed session. Stellantis NV fell by 0.10%, while Renault gained 0.91%.

Air France-KLM took another hit, falling by 0.36%, while Airbus SE ended the day up by 0.50%.

On the VIX Index

A 6-day losing streak came to an end for the  VIX on Thursday.

Partially reversing a 3.36% fall from Wednesday, the VIX rose by 2.24% to end the day at 17.33.

The NASDAQ slipped by 0.16%, with the Dow and the S&P500 falling by 0.25% and by 0.30% respectively.

The Day Ahead

It’s a particularly quiet day ahead on the Eurozone’s economic calendar. There are no major stats from the Eurozone to consider on the day.  The German, Italian, and Spanish markets are closed, with France on a shortened session.

Going into the European open, private sector PMI figures from China will set the tone for the CAC40.

Away from the economic calendar, COVID-19 news will need continued monitoring, however.

The Futures

In the futures markets, at the time of writing, the Dow Mini was down by 52 points.

For a look at all of today’s economic events, check out our economic calendar.