European Equities: Economic Data from Germany and the U.S and the ECB in Focus
Thursday, 27th October
Spanish HICP (YoY) (Oct) Prelim
German Unemployment Change (Oct)
German Unemployment Rate (Oct)
ECB Interest Rate Decision (Oct)
German CPI (MoM) (Oct) Prelim
ECB Press Conference
Friday, 29th October
French Consumer Spending (MoM) (Sep)
French GDP (QoQ) (Q3) 1st Estimate
German GDP (QoQ) (Q3) 1st Estimate
German GDP (YoY) (Q3) 1st Estimate
Spanish GDP (QoQ) (Q3) 1st Estimate
Italian CPI (MoM) (Oct) Prelim
Eurozone CPI y/y (Oct) Prelim
Eurozone GDP q/q (Q3) 1st Estimate
Eurozone GDP y/y (Q3) 1st Estimate
It was a bearish day for the European majors on Wednesday.
The CAC40 fell by 0.19%, with the DAX30 and the EuroStoxx600 ending the day down by 0.33% and by 0.36% respectively.
Economic data from Germany failed to deliver the majors with support in spite of a marginal pickup in consumer confidence.
Market reaction was muted ahead of Thursday’s ECB monetary policy decision and the all-important press conference.
From the U.S, economic data was also less than impressive, pegging the majors back later in the session.
Away from the economic calendar, corporate earnings failed to give the majors a boost on the day.
For November, Germany’s GfK Consumer Climate Index increased from 0.4 to 0.9 for November.
According to the October survey,
- The propensity to buy increased for a 2nd consecutive month, in October, while economic and income expectations decreased.
- While income expectations fell in the month, expectations were still up when compared to the same period of 2020.
- There was also a noticeable fall in the propensity to save.
- In October, the survey suggested that consumers were considering to make purchases in order to avoid even higher prices.
From the U.S
Durable goods and core durable goods orders were in focus later in the European session.
In September, core durable goods orders rose by 0.4% following a 0.3% increase in August.
Durable goods orders fell by 0.4%, however, partially reversing a 1.3% rise from August.
The Market Movers
For the DAX: It was a mixed day for the auto sector on Wednesday. Volkswagen fell by 1.10% to buck the trend on the day. Continental and Daimler ended the day up by 0.56% and by 0.49% respectively, however, with BMW gaining 0.14%.
It was a bearish day for the banks. Deutsche Bank slid by 6.89%, with Commerzbank falling by 2.56%. Deutsche Bank earnings weighed on the sector. While the bank posted a profit for the quarter, trading revenue and the investment banking unit disappointed.
From the CAC, it was a relatively bearish day for the banks. BNP Paribas declined by 0.62%, with Credit Agricole and Soc Gen ending the day down by 0.52% and 0.56% respectively.
It was also a bearish day for the French auto sector. Stellantis NV and Renault fell by 0.07% and by 0.49% respectively.
Air France-KLM ended the day flat, while Airbus SE rose by a modest 0.05%.
On the VIX Index
It was a 2nd consecutive day in the green for the VIX on Wednesday.
Following a 4.86% gain on Tuesday, the VIX rose by 6.26% to end the day at 15.49.
The NASDAQ ended the day flat, while the Dow and the S&P500 fell by 0.74% and 0.51% respectively.
The Day Ahead
It’s a busy day ahead on the Eurozone’s economic calendar. On the economic data front, German unemployment and inflation figures will influence.
The main event of the day, however, will be the ECB monetary policy decision and press conference.
For the European majors, the ECB’s outlook on inflation and the economy will be key along with any shift in policy on interest rates.
From the U.S, jobless claims and 3rd quarter GDP numbers will also provide direction.
Away from the economic calendar, corporate earnings will also continue to influence.
In the futures markets, at the time of writing, the Dow Mini was up by 22 points.
For a look at all of today’s economic events, check out our economic calendar.