European Equities: Economic Data from Germany in Focus Once More

The Majors

It was a mixed start to the week for the European majors on Monday.

The DAX slipped by 0.10%, while the CAC40 and the EuroStoxx600 rose by 0.43% and by 0.22% respectively.

Economic data from Germany and China disappointed, ultimately weighing on the DAX and pinning back the CAC40 and EuroStoxx600.

In May, China’s U.S Dollar trade surplus widened from $42.86bn to $45.43bn versus a forecasted widening to $50.50bn. Another sizeable jump in imports driven by strong demand impressed, pointing to strong domestic demand. Imports surged by a further 51.1% in May, following a 43.1% rise in April. Exports were up by 27.9% year-on-year, however, coming up well short of a forecasted 32.1% increase. In April, exports had risen by 32.3%.

The Stats

It was another relatively quiet day on the economic data front. German factory orders for April were in focus.

In April, factory orders slipped by 0.2% following a 3.9% jump in March. Economists had forecast a 1.0% rise.

According to Destatis,

• Domestic orders declined by 4.3%, while foreign orders rose by 2.7% month-on-month.
• Intermediate goods orders fell by 1.0%, while capital goods orders rose by a modest 0.2%.
• The manufacturers of consumer goods reported a 1.4% increase, however.
• On the same month a year earlier, orders were up 78.9%.
• When compared with February 2020, which was the month prior to COVID-19 restrictions were imposed, orders were 9.9% higher.

From the U.S

It was a particularly quiet day on the economic calendar.

There were no material stats to provide the European majors with direction later in the day.

The Market Movers

For the DAX: It was a mixed day for the auto sector on Monday. Volkswagen fell by 0.44% to buck the trend. Continental rallied by 2.64% to lead the way, however, with BMW and Daimler ending the day up by 1.18% and by 0.59% respectively.

It was also a mixed day for the banks. Deutsche Bank slipped by 0.27%, while Commerzbank rose by 0.44%.

From the CAC, it was a bullish day for the banks. Credit Agricole rose by 0.99%. BNP Paribas and Soc Gen both ended the day up by 0.81%.

It was a bullish day for the French auto sector however. Stellantis NV and Renault saw gains of 1.10% and 0.97% respectively.

Air France-KLM found much-needed support, rising by 0.24%, with Airbus SE gaining 1.27%.

On the VIX Index

Giving up gains from earlier in the day, the VIX ended Monday flat.

Following an 8.98% fall from Friday, the VIX fell back from a day high 17.35 to end the day at 16.42.

The NASDAQ rose by 0.49%, while the Dow and the S&P500 ended the day down by 0.36% and by 0.08% respectively.