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European Equities: Economic Data for Germany and the Eurozone in Focus
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Following upbeat economic data from Germany, the German and Eurozone economies are in focus today. Positive numbers would give the ECB hawks a firmer footing.
Economic Calendar
Tuesday, 7th September
German Industrial Production (MoM) (Jul)
German ZEW Current Conditions (Sep)
German ZEW Economic Sentiment (Sep)
Eurozone GDP (QoQ) (Q2)
Eurozone GDP (YoY) (Q2)
Eurozone ZEW Economic Sentiment (Sep)
Wednesday, 8th September
French Non-Farm Payrolls (QoQ) (Q2)
Thursday, 9th September
German Trade Balance (Jul)
ECB Interest Rate Decision (Aug)
ECB Press Conference
Friday, 10th September
German CPI (MoM) (Aug) Final
The Majors
It was a bullish day for the European majors on Monday.
The DAX30 led the way, rising by 0.96%, with the the CAC40 and the EuroStoxx600 ending the day up by 0.80% and by 0.70% respectively.
With the U.S markets closed, the market focus was on economic data from the Eurozone at the start of the week. Economic data from Germany impressed, delivering support to the majors ahead of the ECB policy decision on Thursday.
Away from the economic calendar, rising COVID-19 cases continued to cause concern.
The Stats
German factory orders and construction PMI figures were in focus early in the European session.
In July, factory orders rose by 3.4%, month-on-month, versus a forecasted 1.00% decline. In June, orders had jumped by 4.6%.
According to Destatis,
- Domestic orders fell by 2.5%, while foreign orders surged by 8.0% in July.
- New orders from the euro area decreased 4.1%, while new orders from other countries jumped by 15.7% compared with June 2021.
- Manufacturers of intermediate goods saw new orders slip 0.5%.
- By contrast, new orders of capital goods rose by 5.4%, with capital goods orders up 7.5%.
- Consumer goods orders also impressed, increasing by 7.5% in July.
In August, the HIS Markit Construction PMI fell from 47.1 to 44.6. The numbers had a muted impact on the European majors, however.
From the U.S
There were no stats to influence the majors later in the session, with the U.S markets closed for Labor Day.
The Market Movers
For the DAX: It was a mixed day for the auto sector on Monday. Volkswagen and BMW rose by 0.25% and 0.80% respectively. Continental and Daimler ended the day down by 1.40% and by 0.03% respectively.
It was a bullish day for the banks, however. Deutsche Bank and Commerzbank saw gains of 2.13% and 1.87% respectively.
From the CAC, it was a relatively bullish day for the banks. BNP Paribas and Soc Gen rose by 0.46% and by 0.40% respectively, with Credit Agricole ending the day up by 0.83%.
It was also a relatively bullish day for the French auto sector. Stellantis NV and Renault rose by 0.65% and by 0.15% respectively.
Air France-KLM ended the day down by 0.56%, while Airbus SE rallied by 1.22%.
On the VIX Index
The U.S markets were closed for Labor Day on Monday. On Friday, the VIX had ended the day flat after having risen by 1.86% on Thursday.
The Day Ahead
It’s a busier day ahead on the Eurozone’s economic calendar.
The German economy is back in focus, with industrial trend orders and ZEW Economic Sentiment figures due out.
For the Eurozone, 2nd quarter GDP and ZEW Economic Sentiment figures will also draw interest.
From the U.S, it’s another quiet day ahead on the economic calendar. There are no major stats to provide direction late in the European session.
Ahead of the European open, however, trade data from China set the tone.
The Futures
In the futures markets, at the time of writing, the Dow Mini was up by 63 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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