European Equities: Consumer Confidence for Germany and the Eurozone in Focus
Thursday, 21st October
GfK German Consumer Climate (Nov)
Eurozone Consumer Confidence (Oct) Flash
Friday, 22nd October
French Manufacturing PMI (Oct) Prelim
French Services PMI (Oct) Prelim
German Manufacturing PMI (Oct) Prelim
German Services PMI (Oct) Prelim
Eurozone Manufacturing PMI (Oct) Prelim
Eurozone Markit Composite PMI (Oct) Prelim
Eurozone Services PMI (Oct) Prelim
It was a relatively bullish day for the European majors on Wednesday.
The DAX30 rose by 0.05%, with the CAC40 and the EuroStoxx600 ending the day up by 0.54% and by 0.32% respectively.
After a quiet day on the economic calendar on Tuesday, inflation was back in focus mid-week. German wholesale and Eurozone inflation testing support on the day.
From the U.S, there were no major stats to consider, however, leaving crude oil prices and corporate earnings in focus.
German wholesale inflationary pressures picked up once more in September. Month-on-month, the producer price index rose by 2.3% after having risen by 1.5% in August. Economists had forecast a 1.0 increase. The annual rate of wholesale inflation accelerated from 12.0% to 14.2% versus a forecasted 12.7%.
Finalized inflation figures for the Eurozone were also in focus on the day.
In September, the Eurozone’s annual rate of inflation picked up from 3.0% to 3.4%, which was in line with prelim figures. The core annual rate of inflation accelerated from 1.6% to 1.9%, which was also in line with prelim figures.
From the U.S
There were no major stats for the markets to consider on the day.
The Market Movers
For the DAX: It was a mixed day for the auto sector on Wednesday. Volkswagen slid by 1.64% to lead the way down, with BMW falling by 1.01%. Daimler saw a more modest 0.68% decline, while Continental rose by 0.17%.
It was also a mixed day for the banks. Deutsche Bank rose by 0.70%, while Commerzbank fell by 1.21%.
From the CAC, it was a mixed day for the banks. Soc Gen fell by 0.30%, while BNP Paribas and Credit Agricole ended the day with gains of 0.14% and 0.72% respectively.
It was also a mixed day for the French auto sector. Stellantis NV rose by 0.16%, while Renault slid by 2.78%.
Air France-KLM saw more red, declining by 0.85%, with Airbus SE falling by 0.14%.
On the VIX Index
It was a 2nd consecutive day in the red for the VIX on Wednesday, marking a 6th day in the red from 7-sessions.
Following a 3.74% fall on Tuesday, the VIX fell by 1.34% to end the day at 15.49.
The NASDAQ slipped by 0.05%, while the Dow and the S&P500 gained 0.43% and 0.37% respectively.
The Day Ahead
It’s a relatively busy day ahead on the Eurozone’s economic calendar. German and Eurozone consumer confidence figures will be focus through the session.
With consumption key to economic growth, consumer sentiment will need to see a pickup to support the majors.
From the U.S, jobless claims and Philly FED Manufacturing PMI figures will also draw interest.
Away from the economic calendar, however, corporate earnings, central bank chatter, and crude oil prices will need continued monitoring.
In the futures markets, at the time of writing, the Dow Mini was down by 28 points.
For a look at all of today’s economic events, check out our economic calendar.