Economic data and geopolitics will be the key areas of focus, along with COVID-19 news and updates on the day.
French Consumer Confidence (August)
French Jobseekers Total
GfK German Consumer Climate (Sep)
French Consumer Spending (MoM) (Jul)
French GDP (QoQ) (Q2) Final
It was a mixed day for the European majors on Tuesday. The DAX30 and EuroStoxx600 slipped by 0.04% and by 0.30% respectively, with the CAC40 ended the day down by 0.01%.
Following the disappointment of August’s private sector PMIs, economic data was skewed to the positive on Tuesday.
Optimism towards successful treatment of COVID-19 and easing tensions between the U.S and China were also positive.
Concerns over the Eurozone economy, however, limited the upside on the day.
It was a relatively busy day on the Eurozone economic calendar. Key stats included 2nd estimate GDP numbers for the 2nd quarter and IFO Business Climate figures from Germany.
According to Destatis,
From the IFO, the Business Climate Index rose from 90.4 to 92.6. Economists had forecast a decline to 92.2.
According to the August survey,
It was a relatively quiet day on the economic calendar. Key stats included August consumer confidence figures and housing sector numbers for June and July.
In August, the CB Consumer Confidence Index fell from 91.7 to 84.8. Economists had forecast a rise to 93.0.
From the housing sector:
The housing sector numbers had a muted impact on the European majors, however.
For the DAX: It was a mixed day for the auto sector on Tuesday. Continental rose by 0.94% to buck the trend on the day. BMW and Daimler fell by 0.26% and by 0.64% respectively, with Volkswagen declining by 0.13% on the day.
It was another bullish day for the banks, however. Deutsche Bank and Commerzbank ended the day with gains of 0.59% and 0.66% respectively.
From the CAC, it was a mixed day for the banks. Soc Gen fell by 0.30%, while BNP Paribas and Credit Agricole rose by 0.21% and by 0.26% respectively.
It was also a mixed day for the French auto sector. Peugeot slipped by 0.67%, while Renault rose by 0.14%.
Air France-KLM rose by 1.29%, following on from Monday’s 2.09% gain, while Airbus SE ended the day down by 0.75%.
It was a 3rd consecutive day in the red for the VIX. Following on from a 0.75% loss on Monday, the VIX fell by 1.52% to end the day at 22.03.
The S&P500 and NASDAQ rose by 0.36% and by 0.76% respectively, while the Dow fell by 0.21%.
A combination of easing tensions between the U.S and China and positive COVID-19 news provided support for the majors.
An easing in the number of new COVID-19 cases and hopes of successful treatment and vaccine were positives.
On the geopolitical risk front, there was also news of the U.S and China making progress on trade talks and reaffirming commitment to the phase 1 trade agreement.
It’s a relatively quiet day ahead on the Eurozone economic calendar. Key stats include French consumer confidence and job seeker totals.
We can expect both sets of numbers to have an influence on the CAC40 in the early part of the European session.
Later in the day, durable goods and core durable goods orders from the U.S will also influence the European majors.
Away from the economic calendar, chatter from Beijing and Washington and COVID-19 news will also need monitoring.
In the futures markets, at the time of writing, the DAX was up by 2.5 points, while the Dow was down by 51 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.