European Equities: Economic Data Will Need to Impress…

With the futures markets signaling red, the Eurozone economic calendar will need to provide support later today.
Bob Mason
Global financial markets

Economic Calendar:

Wednesday, 6th November

  • German Factory Orders (MoM) (Sep)
  • Spanish Services PMI (Oct)
  • Italian Services PMI (Oct)
  • French Services PMI (Oct) Final
  • German Services PMI (Oct) Final
  • Eurozone Markit Composite PMI (Oct) Final
  • Eurozone Services PMI (Oct) Final
  • Eurozone Retail Sales (MoM) (Sep)

Thursday, 7th November

  • German Industrial Production (MoM) (Sep)
  • ECB Economic Bulletin  

Friday, 8th November

  • German Trade Balance (Sep)
  • French Non-Farm Payrolls (QoQ) (Q3)

The Majors

It was another day in the green for the European majors on Tuesday, with the CAC40 up by 0.39% to lead the way. The EuroStoxx600 and DAX30 saw more modest gains of 0.20% and 0.09% respectively.

With no economic data out of the Eurozone to provide direction, positive sentiment towards the U.S – China trade talks continued to provide support.

The Stats

It was a quiet day on the Eurozone economic calendar on Tuesday. There were no material stats due out of the Eurozone to provide direction to the majors with direction.

A lack of stats left the European majors in the hands of corporate earnings, economic data out of the U.S and geopolitical risk on the day.

Economic data from the U.S included finalized October service and Composite PMIs, September JOLTs job openings and the market’s preferred ISM Non-Manufacturing PMI for October.

The market’s preferred ISM numbers showed that service sector activity picked up in October. The ISM non-manufacturing PMI rose from 52.6 to 54.7, which was market positive. The rise in October was in contrast to the less influential Markit survey figures that showed service sector activity grow at a slower pace. The Markit Service PMI fell from 50.9 to 50.6 in October.

A fall in JOLTs job openings in September and a narrowing in the U.S trade deficit had a muted impact on the European majors.

The Market Movers

For the DAX: It was another mixed day for the auto sector on Tuesday. Continental and BMW led the way, with gains of 2.05% and 1.96% respectively. Daimler also saw green, rising by 0.44%, whilst Volkswagen bucked the trend, falling by 0.19% on the day.

Banks also found support on Tuesday. Commerzbank rose by 1.23%, with Deutsche Bank up by 0.09%.

From the CAC, bank stocks also found support. Soc Gen and BNP Paribas led the way, rising by 1.52 % and by 1.34% respectively, with Credit Agricole up by 0.63%.

It was mixed for autos, however. Peugeot rose by 1.08%, while Renault fell by 0.47% on the day.

On the VIX Index

The VIX Index saw green for a second consecutive day on Tuesday, rising by 2.10%. Following on from a 4.31% gain on Monday, the VIX ended the day at 13.1.

The upside for the VIX came in spite of positively skewed data from the U.S and ongoing hopes of a partial end to the U.S – China trade war.

The Day Ahead

It’s a busy day ahead on the Eurozone economic calendar. Key stats due out of the Eurozone include German factory orders for September, October Service Sector PMIs out of Spain and Italy and Eurozone retail sales figures for September. The Eurozone’s finalized service and composite will also provide direction.

Barring material deviation from prelims, finalized French and German service sector PMIs will unlikely to have an influence on the day.

Corporate earnings and geopolitical risk will continue to provide direction throughout the day.

From the U.S, 3rd quarter unit labor costs and nonfarm productivity numbers will likely have a muted impact on the majors.

In the futures market, at the time of writing, the DAX30 was down by 31.5 points, with the Dow down by 29 points.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US