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European Equities: Economic Data and Oil Prices in Focus
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After a mixed start to the week, economic sentiment figures from Germany and the Eurozone and job openings from the U.S will be in focus. Crude oil prices will also influence, however.
Economic Calendar
Tuesday, 12th October
German ZEW Current Conditions (Oct)
German ZEW Economic Sentiment (Oct)
ZEW Economic Sentiment (Oct)
Wednesday, 13th October
German CPI (MoM) (Sep) Final
Eurozone Industrial Production (MoM) (Aug)
Thursday, 14th October
Spanish CPI (YoY) (Sep) Final
Spanish HICP (YoY) (Sep) Final
Friday, 15th October
French CPI (MoM) (Sep) Final
French HICP (MoM) (Sep) Final
Italian CPI (MoM) (Sep) Final
Eurozone Trade Balance (Aug)
The Majors
It was a mixed start to the week for the European majors on Monday.
The DAX30 slipped by 0.05%, while the CAC40 and the EuroStoxx600 ended the up by 0.16% and by 0.05% respectively.
A light economic calendar left the majors concerned over inflation and the impact on monetary policy.
With the FED and the BoE having already raised concerns over the likely adverse impact of inflation, the ECB policy meeting minutes also highlighted concerns amongst members.
A move to curb inflation amidst economic uncertainty would be a test for the global financial markets…
Oil prices were on the rise once more on Monday, supporting the market concerns over inflation.
The Stats
Italian production decreased by 0.2% in August, partially reversing a 1.0% increase in July. Economists had forecast a 0.3% fall.
From the U.S
There were no major stats for the majors to consider late in the European session.
The Market Movers
For the DAX: It was a bullish day for the auto sector on Monday. BMW and Daimler rallied by 2.55% and by 2.77% respectively, with Continental gaining 1.30%. Volkswagen rose by a more modest 0.48%.
It was also a bullish day for the banks. Deutsche Bank rose by 0.52%, with Commerzbank ending the day up by 1.66%.
From the CAC, it was a mixed day for the banks. Credit Agricole fell by 0.14%, while BNP Paribas and Soc Gen ended the day up by 0.58% and by 0.30% respectively.
It was a bullish day for the French auto sector, however. Stellantis NV rose by 2.50%, with Renault ending the day up by 3.39%.
Air France-KLM rose by 1.93%, with Airbus SE ending the day up by 0.53%.
On the VIX Index
It was back into the green for the VIX on Monday, ending a run of 4 consecutive days in the red.
Reversing a 3.94% fall from Friday the VIX rose by 6.55% to end the day at 20.00.
The Dow fell by 0.72%, with the NASDAQ and S&P500 ending the day down by 0.64% and by 0.69% respectively.
The Day Ahead
It’s a relatively quiet start to the week on the Eurozone’s economic calendar. October ZEW economic sentiment figures for Germany and the Eurozone will be in focus later today.
With little else for the markets to consider from the pre-open, expect the numbers to influence.
From the U.S, JOLT’s job openings will also provide direction later in the day.
On the monetary policy front, central bank chatter will also need monitoring, with crude oil prices likely to remain a factor.
The Futures
In the futures markets, at the time of writing, the Dow Mini was down by 25 points.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Bob Masonauthor
With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.
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