It's a busier day ahead on the economic calendar, with stats for the Eurozone, France, Germany, the U.S and private sector PMIs from China to influence...
German Unemployment Change (Aug)
German Unemployment Rate (Aug)
Italian CPI (MoM) (Aug) Prelim
Eurozone CPI (YoY) (Aug) Prelim
German Retail Sales (MoM) (Jul)
Spanish Manufacturing PMI (Aug)
Italian Manufacturing PMI (Aug)
French Manufacturing PMI (Aug) Final
German Manufacturing PMI (Aug) Final
Eurozone Manufacturing PMI (Aug) Final
Eurozone Unemployment Rate (Jul)
Spanish Services PMI (Aug)
Italian Services PMI (Aug)
French Services PMI (Aug) Final
German Services PMI (Aug) Final
Eurozone Markit Composite PMI (Aug) Final
Eurozone Services PMI (Aug) Final
Eurozone Retail Sales (MoM) (Jul)
It was a relatively bullish start to the week for the European majors on Monday.
The DAX30 rose by 0.22%, with the CAC40 and the EuroStoxx600 ending the day up by 0.08% and by 0.07% respectively.
Support for the majors continued to come from FED Chair Powell’s policy speech from Friday. Economic data from Germany also supported the ECB’s view that the inflationary build was likely to be transitory.
Concerns over the impact of the Delta variant lingered, however, though progress on the vaccination front remains a counter.
German inflation figures were the key stats of the day.
In August, consumer prices stalled, month-on-month, after having risen by 0.9% in July. Economists had forecast a 0.1% increase.
Germany’s annual rate of inflation picked up from 3.8% to 3.9%, which fell short of a forecasted 4.9%.
Economic data was limited to pending home sales figures for July, which had a muted impact on the majors.
For the DAX: It was a relatively bullish day for the auto sector on Monday. Continental and Daimler ended the day up by 0.54% and by 0.60% respectively. BMW and Volkswagen led the way, however, with gains of1.23% and 1.15% respectively.
It was a bearish day for the banks, however. Deutsche Bank and Commerzbank fell by 0.57% and by 0.34% respectively.
From the CAC, it was a bearish day for the banks. BNP Paribas and Credit Agricole fell by 0.86% and by 0.21% respectively, with Soc Gen sliding by 1.59%.
It was also a bearish day for the French auto sector. Stellantis NV and Renault saw losses of 0.85% and 0.47% respectively.
Air France-KLM fell by 1.49%, with Airbus SE ended the day down by 0.14%.
It was a 2nd consecutive day in the red for the VIX on Monday.
Following a 13.00% slide on Friday, the VIX fell by 1.22% to end the day at 16.19.
The Dow fell by 0.16%, while the NASDAQ and the S&P500 ended the day up by 0.90% and by 0.43% respectively.
It’s a particularly busy day ahead on the Eurozone’s economic calendar. French consumer spending and 2nd quarter GDP numbers will be in focus going into the European session.
While the GDP numbers will be of greater influence, an unexpected fall in spending would test support for the CAC40.
Later in the morning, German unemployment figures will also draw plenty of interest.
On the inflation front, prelim August inflation figures for Italy and the Eurozone are also due out. Inflation is a key area of focus for the markets, with any further pickup in Eurozone inflationary pressure likely to question the ECB’s policy timelines.
From the U.S, consumer confidence figures for August, due out late in the day, will also be key.
Ahead of the European open, expect private sector PMI numbers from China to set the tone.
In the futures markets, at the time of writing, the Dow Mini was up by 42 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.