European Equities: Economic Data from Germany and the U.S in Focus
Tuesday, 25th August
German GDP (YoY) (Q2) Final
German GDP (QoQ) (Q2) Final
German IFO Business Climate Index (Aug)
Friday, 28th August
GfK German Consumer Climate (Sep)
French Consumer Spending (MoM) (Jul)
French GDP (QoQ) (Q2) Final
It was a bullish start to the week for the European majors on Monday. The DAX30 and CAC40 rallied by 2.36% and by 2.28% respectively, with the EuroStoxx600 rising by 1.58%.
There were no stats to spook the markets, following Friday’s disappointing PMI numbers. The lack of economic data left the news wires to provide direction.
News from the U.S of the FDA approving the use of the blood plasma of cured COVID-19 patients to treat the virus delivered support.
Reports of the U.S administration considering fast-tracking a COVID-19 vaccine from the UK added to the upbeat mood. Trump may be looking to force the FDA to approve a University of Oxford vaccine to be distributed across the U.S.
It was a particularly quiet start to the week on the Eurozone economic calendar. There were no material stats to provide the European majors with direction.
From the U.S
It was also a quiet day on the economic calendar, with no material stats from the U.S to provide direction late in the session.
The Market Movers
For the DAX: It was a bullish day for the auto sector on Monday. Daimler rallied by 3.76%, with BMW and Continental gaining 2.24% and 1.59% respectively. Volkswagen saw a more modest 0.43% gain on the day.
It was a particularly bullish day for the banks. Deutsche Bank jumped by 4.41%, with Commerzbank gaining 2.61%.
From the CAC, it was a bullish day for the banks. Soc Gen rallied by 4.19% to lead the way. BNP Paribas and Credit Agricole rose by 2.62% and by 2.90% respectively.
It was also a bullish day for the French auto sector. Peugeot rose by 3.94%, with Renault rallying by 6.38%.
Air France-KLM rose by 2.09%, following on from Friday’s 1.78% gain, with Airbus SE rallying by 4.37%.
On the VIX Index
It was a 2nd consecutive day in the red for the VIX. Following on from a 0.79% loss on Friday, the VIX fell by 0.75% to end the day at 22.37.
The S&P500 and NASDAQ rose by 1.00% and by 0.60% respectively, with the Dow gaining 1.35%.
Following last week’s positive private sector PMI numbers from the U.S, COVID-19 treatment news delivered support.
The Day Ahead
It’s a busy day ahead on the Eurozone economic calendar. Key stats include 2nd estimate GDP numbers for the 2nd quarter and August IFO Business Climate figures from Germany.
Last week, while Germany saw service sector activity growth ease, manufacturing sector activity picked up in August.
Positive business sentiment figures and an upward revision to GDP numbers would provide further support.
From the U.S, expect August consumer confidence figures to also provide direction late in the European session.
Away from the economic calendar, the markets will need to continue to monitor geopolitics and COVID-19 news.
In the futures markets, at the time of writing, the Dow was down by 10 points.
For a look at all of today’s economic events, check out our economic calendar.