After a relatively quiet Wednesday on the economic data front, stats from Germany and the U.S will provide direction later today. Central bank chatter will also need monitoring, however.
GfK German Consumer Climate (Jun)
French Consumer Spending (MoM) (Apr)
French GDP (QoQ) (Q1) Final
French CPI m/m (May) Prelim
French HICP m/m (May) Prelim
It was another mixed day for the European majors on Wednesday.
The the DAX30 slipped by 0.09%, while the CAC40 and EuroStoxx600 eked out gains of 0.02% and 0.03% respectively.
With economic data on the lighter side, chatter from FOMC members of a willingness to begin considering a tapering to the asset purchasing program pegged the majors back.
In contrast, however, assurances from the ECB that it’s too early to begin considering any such tapering delivered support.
A pickup in both French business and consumer confidence added support for the CAC40.
Economic data from the Eurozone included business and consumer confidence figures from France.
The Business Climate Survey Indicator for manufacturing rose from 104 to 107 in May. Economists had forecast an increase to 106.0.
According to Insee.Fr,
Consumer confidence also improved, with the consumer confidence indicator rising from 95 to 97 in May. Economists had forecast an increase to 97.
According to Insee.Fr,
There were no material stats to provide the European majors with direction late in the day.
For the DAX: It was a bullish day for the auto sector on Wednesday. Daimler rose by 1.10% to lead the way, with BMW and Continental up by 0.67% and by 0.47% respectively. Volkswagen ended the day with a more modest 0.18% gain.
It was a mixed day for the banks. Deutsche Bank rose by 0.53%, while Commerzbank slid by 2.21%.
From the CAC, it was a bearish day for the banks. BNP Paribas and Credit Agricole ended the day down by 1.35% and by 1.14% respectively. Soc Gen led the way down, however, falling by 2,12%.
It was a relatively bullish day for the French auto sector, however. Stellantis NV and Renault ended the day with gains of 0.01% and 0.65% respectively.
Air France-KLM fell by 1.33%, while Airbus SE rose by 0.55%.
It was back into the red for the VIX on Wednesday, marking a 4th day in the red from 5 sessions.
Reversing a 2.39% rise from Tuesday, the VIX fell by 7.91% to end the day at 17.35.
The NASDAQ rose by 0.59%, with the Dow and the S&P500 ending the day with modest gains of 0.03% and by 0.19% respectively.
It’s a relatively quiet day ahead on the European economic calendar. From the Eurozone, German consumer sentiment figures are due out ahead of the European open.
Following the pickup in business sentiment, the markets will be looking for consumer confidence to support a positive outlook on spending.
From the U.S, 2nd estimate GDP, core durable goods, and the weekly jobless claims figures will also provide direction later in the day.
On the monetary policy front, chatter from central bankers will also need continued monitoring.
In the futures markets, at the time of writing, the Dow Mini was up by 8 points.
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.