European Equities: ECB Forecasts and the Economic Bulletin in Focus

The CAC40 and the DAX30 ended the day with more modest gains of 0.03% and 0.17% respectively, however.

Economic data from the Eurozone was limited to finalized inflation figures from Germany that had a muted impact on the majors.

Ahead of the European open, China inflation failed to spook the markets in spite of a further pickup in cost pressures.

In October, China’s annual rate of inflation accelerated from 0.7% to 1.5%. Month-on-month, consumer prices increased by 0.7% following a 0.1% rise in September. Wholesale inflation accelerated. China’s annual wholesale rate of inflation picked up from 10.7% to 13.5%.

From the U.S, inflation figures for October also failed to move the dial later in the European session.

Corporate earnings delivered support on the day, with Siemens Energy AG rallying by 2.64% to lead the way on the DAX30.

The Stats

German inflation was in focus in the early part of the European session. Month-on-month, consumer prices increased by 0.5% in October, which was in line with prelim figures. Germany’s annual rate of inflation accelerated from 4.1% to 4.5%, which was also in line with prelim figures.

From the U.S

Consumer prices rose by 0.9% in October following a 0.4% increase in September.

More significantly, the core annual rate of inflation accelerated from 4.0% to 4.6. Economists had forecast an annual core inflation rate of 4.3%.

Month-on-month, core consumer prices increased by 0.6% following a 0.2% rise in the month prior.

The Market Movers

For the DAX: It was another mixed day for the auto sector on Wednesday. Volkswagen fell by 0.49% to buck the trend. BMW and Daimler rose by 0.65% and by 0.57% respectively, however, with Continental ending the day up by 0.32%.

It was a bullish day for the banks. Deutsche Bank rose by 0.55%, with Commerzbank rallying 3.73%.

From the CAC, it was a mixed day for the banks. BNP Paribas rose by 0.56%, while Credit Agricole and Soc Gen fell by 1.85% and by 0.39% respectively.

It was a bullish day for the French auto sector, however. Stellantis NV and Renault ended the day with gains of 2.29% and 1.92% respectively.

Air France-KLM fell by 1.21%, with Airbus SE declining by 0.10%.

On the VIX Index

It was a 5^th consecutive day in the green for the  VIX on Wednesday.

Following a 3.25% gain on Tuesday, the VIX rose by 5.34% to end the day at 18.73.

The NASDAQ slid by 1.66%, with the Dow and the S&P500 ending the day down by 0.66% and by 0.82% respectively.

The Day Ahead

It’s a relatively quiet day ahead on the Eurozone’s economic calendar. There are no material stats due out of the Eurozone to provide the majors with direction.

While there are no stats, the ECB Economic Bulletin and ECB Forecasts will provide direction, however.

From the U.S, there are no major stats to influence, leaving the European majors in the hands of any FOMC member chatter.

Away from the economic calendar, corporate earnings and commodity prices will also remain key drivers.

The Futures

In the futures markets, at the time of writing, the Dow Mini was down by 5 points.

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