It's a busy day ahead on the economic calendar, with stats from Germany and the U.S to provide direction. Trade data from China will set the tone ahead of the open.
German Industrial Production (MoM) (Mar)
German Trade Balance (Mar)
ECB President Lagarde Speech
It was a mixed day for the European majors on Thursday following Wednesday’s rebound. The CAC40 and the DAX30 ended the day with gains of 0.28% and 0.17% respectively. The EuroStoxx600 bucked the trend, however, with a 0.22% loss.
Economic data from the Eurozone and the U.S provided the European majors with support on Thursday.
Ahead of today’s nonfarm payrolls, the weekly jobless claims and factory orders from Germany impressed. Corporate earnings results added further support on the day.
Both France’s Soc Gen and Italy’s UniCredit delivered better than expected earnings results, supporting bank stocks.
Tech stocks were a drag once more, as were pharma stocks that struggled following U.S President Biden’s call for pharmas to waive COVID-19 patents. From the EU, a push back by German Chancellor Merkel and EU drug companies limited the damage, however.
It was a busy day on the Eurozone economic calendar on Thursday. Key stats included German factory orders and Eurozone retail sales figures.
In March, factory orders rose by 3.0%, month-on-month, following a 1.2% increase in February. Economists had forecast a 1.7% rise.
According to Destatis,
In March, retail sales rose by 2.7% month-on-month following a 4.2% increase in February. Economists had forecast a 1.5% rise.
According to Eurostat,
From the ECB, the Economic Bulletin was also in focus early in the European session.
Salient points from the summary section included:
Weekly jobless claims were in focus later in the European session. In the week ending 30th April, initial jobless claims fell from a revised 590k to 498k. Economists had forecast a decline to 540k.
Other stats included prelim unit labor costs and nonfarm productivity figures for the 1st quarter. The stats had a muted impact on the European majors.
For the DAX: It was a mixed day for the auto sector on Thursday. BMW and Daimler rose by 0.77% and by 0.79% respectively, with Continental gaining 0.68%. Volkswagen slid by 1.71%, however, to buck the trend.
It was also a mixed day for the banks. Deutsche Bank rose by 1.13%, while Commerzbank ended the day down by 0.56%.
From the CAC, it was a relatively bullish day for the banks. Soc Gen jumped by 5.46% following its better than expected earnings results. BNP Paribas and Credit Agricole saw modest gains of 0.02% and 0.69% respectively, however.
It was a mixed day for the French auto sector. Stellantis NV rose by 0.45%, while Renault ended the day down by 0.25%.
Air France-KLM fell by 2.61%, while Airbus SE rose by 0.19%.
It was a second consecutive day in the red for the VIX on Thursday, marking a 3rd day in the red from 6 sessions.
Following on from a 1.69% fall on Wednesday, the VIX declined by 3.97% to end the day at 18.39.
The Dow and the S&P500 rose by 0.93% and by 0.82% respectively, with the NASDAQ ending the day up by 0.37%.
It’s a relatively busy day ahead on the Euro area economic calendar. Key stats include German industrial production and trade data for March. On the monetary policy front, ECB President Lagarde is also scheduled to speak later today. Any comments on the economy or monetary policy will influence.
Ahead of the European open, trade data and private sector PMI figures from China will set the tone.
From the U.S, nonfarm payrolls and unemployment figures will also provide direction late in the European session.
Away from the economic calendar, expect further discussion on Biden’s COVID-19 patent waiver plans to also draw interest.
In the futures markets, at the time of writing, the Dow Mini was down by 16 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.