European Equities: Economic Data from the Eurozone and the U.S in Focus

In the week ending, 5^th February, initial jobless claims eased from 812k to 793k. Economists had forecast a decline to 757k. The numbers continued to paint a dire picture of the U.S economy early in the year, highlighting the need for more fiscal support.

The Market Movers

For the DAX: It was bullish day for the auto sector on Thursday. Volkswagen rallied by 1.64%, with BMW and Continental seeing gains of 0.92% and 0.90% respectively. Daimler rose by a more modest 0.18% on the day.

It was another mixed day for the banks. Deutsche Bank rose by 0.70%, while Commerzbank tumbled by 5.96%. A heavy 4^th quarter loss and a weaker than anticipated 2021 outlook weighed.

From the CAC, it was another bullish day for the banks. BNP Paribas and Soc Gen rose by 1.24% and by 0.31% respectively. Credit Agricole led the way, however, with a 4.94% gain, supported by better-than-expected 4^th quarter earnings results.

It was a mixed day for the French auto sector, however. Stellantis NV fell by 0.42%, while Renault rose by 0.33%.

Air France-KLM and Airbus SE gave up more ground, with losses of 1.25% and 0.51% respectively.

On the VIX Index

A run of 3 consecutive days in the green came to an end for the VIX on Thursday. Reversing a 1.66% gain from Wednesday, the VIX fell by 3.37% to end the day at 21.25.

The Dow slipped by 0.02%, while the NASDAQ and the S&P500 rose by 0.38% and by 0.17% respectively.

The Day Ahead

It’s a relatively quiet day ahead on the European economic calendar. Key stats include finalized inflation figures from Spain and industrial production figures for the Eurozone.

Expect the Eurozone’s industrial production figures for December to have the greatest impact. The markets are unlikely to be expecting great numbers, however.

Industrial production in France and Italy took a hit in December, with production in Germany stalling at the end of the year.

From the U.S, consumer sentiment figures for February will also draw interest late in the session.

Away from the economic calendar, corporate earnings and chatter from Capitol Hill will continue to be key drivers.

The Futures

In the futures markets, at the time of writing, the Dow Mini was down by 22 points.