It's a quiet day ahead on the economic calendar, with Eurozone consumer confidence figures due out late in the session. Through the early part of the day, COVID-19 news updates will likely influence.
Eurozone Consumer Confidence (Nov) Flash
French Manufacturing PMI (Nov) Prelim
French Services PMI (Nov) Prelim
German Manufacturing PMI (Nov) Prelim
German Services PMI (Nov) Prelim
Eurozone Manufacturing PMI (Nov) Prelim
Eurozone Markit Composite PMI (Nov) Prelim
Eurozone Services PMI (Nov) Prelim
German Ifo Business Climate Index (Nov)
German (YoY) (Q3)
GfK German Consumer Climate (Dec)
It was a bearish end to the week for the European majors on Friday, with the EuroStoxx600 seeing red for the 2nd time in 8-sessions.
The CAC40 fell by 0.42%, with the DAX30 and the EuroStoxx600 seeing losses of 0.38% and 0.33% respectively.
A relatively quiet economic calendar left the markets in the hands of market sentiment towards inflation and COVID-19 news updates.
The downside at the end of the week came in spite of continued assurances by ECB President Lagarde of unwavering policy support.
News of Austria and other EU member states facing a renewed surge in new COVID-19 cases led to the Austrian government making a move to curb the number of rising cases.
Early in the week, Austria had imposed lockdown measures for unvaccinated people. At the end of the week, however, the government imposed a full lockdown.
Germany has also talked of new restrictions after having introduced restrictions for unvaccinated people.
In October, Germany’s producer prices for industrial products jumped by 3.8% versus a forecasted 2.3%. The PPI had risen by 1.4% in September.
Germany’s wholesale annual rate of inflation accelerated from 14.2% to 18.4%. Economists had forecast 15.7%.
According to Destatis,
On the monetary policy front, ECB President Lagarde delivered a speech at the 31st Frankfurt European Banking Congress.
As with speeches earlier in the week the ECB President assured unwavering policy support.
See here for the content of ECB President Lagarde’s speech.
There were no material stats to provide the majors with direction later in the European session.
For the DAX: It was a bearish day for the auto sector on Friday. Volkswagen slid by 2.59%, with Continental ending the day down by 1.38%. Daimler and BMW saw relatively modest losses of 1.05% and 0.87% respectively.
It was also a bearish day for the banks. Deutsche Bank and Commerzbank ended the day down by 4.62% and by 3.77% respectively.
From the CAC, it was a bearish day for the banks. BNP Paribas slid by 3.02%, with Soc Gen and Credit Agricole falling by 2.53% and by 1.36% respectively.
The French auto sector also struggled. Stellantis NV and Renault ended the day with losses of 2.51% and 3.94% respectively.
Air France-KLM fell by 1.15%, with Airbus SE sliding by 3.41%.
It was a 3rd consecutive day in the green for the VIX on Friday.
Following a 2.81% gain on Thursday, the VIX rose by 1.82% to end the day at 17.91.
The NASDAQ rose by 0.40%, while the Dow and the S&P500 saw losses of 0.75% and 0.14% respectively.
It’s a relatively quiet day ahead on the Eurozone’s economic calendar. Flash Eurozone consumer confidence figures for November will be in focus late in the European session.
While we can expect the numbers to influence, COVID-19 news updates from the EU will likely be key, however.
Following news of Austria reintroducing lockdown measures, similar moves by other member states would test support on the day.
For a look at all of today’s economic events, check out our economic calendar.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.