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European Equities: Eurozone Consumer Confidence in Focus Late in the Session
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Economic data from the Eurozone will draw interest late in the day. FED Chair Powell testimony after the European close will be a factor to consider, however.
In this article:
Economic Calendar
Tuesday, 22nd June
Eurozone Consumer Confidence (Flash)
Wednesday, 23rd June
French Manufacturing PMI (Jun) Prelim
French Services PMI (Jun) Prelim
German Manufacturing PMI (Jun) Prelim
German Services PMI (Jun) Prelim
Eurozone Manufacturing PMI (Jun) Prelim
Eurozone Markit Composite PMI (Jun) Prelim
Eurozone Services PMI (Jun) Prelim
Thursday, 24th June
Spanish GDP (QoQ) (Q1)
German Ifo Business Climate Index (Jun)
ECB Economic Bulletin
Friday, 25th June
GfK German Consumer Climate (Jul)
The Majors
It was a bullish start to the week for the European majors on Monday, as the majors look to recover Friday’s losses.
The DAX30 rose by 1.00%, with the CAC40 and the EuroStoxx600 gaining by 0.51% and by 0.70% respectively.
There were no major stats for the markets to consider on the day, leaving monetary policy, COVID-19 news, and market sentiment towards the economic outlook in focus.
While there were no stats to consider, the PBoC left loan prime rates unchanged ahead of the European open, which was market positive.
On the monetary policy front, ECB President Lagarde also delivered the majors with support on the day. Lagarde spoke of a likely speedier economic recovery, while also continuing to assure unwavering ECB support.
The Stats
It was a particularly quiet day on the economic calendar. There were no major stats from the Eurozone to provide the majors with direction.
From the U.S
There were also no material stats from the U.S to provide the majors with direction.
The Market Movers
For the DAX: It was a bullish day for the auto sector on Monday. Volkswagen rallied by 3.45% to lead the way, with Continental gaining 2.89%. Daimler and BMW ended the day up by 2.46% and by 2.52% respectively.
It was also a bullish day for the banks. Deutsche Bank and Commerzbank rose by 0.91% and by 0.15% respectively.
From the CAC, it was a mixed day for the banks. BNP Paribas and Credit Agricole rose by 0.22% and by 0.29% respectively. Soc Gen fell by 0.70%, however.
It was also a mixed day for the French auto sector. Stellantis NV ended the day flat, while Renault rose by 1.79%.
Air France-KLM slipped by 0.46%, while Airbus SE rose by 0.18%.
On the VIX Index
It was a back into the red for the VIX on Monday.
Partially reversing a 16.62% jump from Friday, the VIX slid by 13.57% to end the day at 17.89.
The NASDAQ rose by 0.79%, with the Dow and the S&P500 ending the day up by 1.76% and by 1.40% respectively.
The Day Ahead
It’s a relatively quiet day ahead on the European economic calendar.
Flash consumer confidence figures for the Eurozone are due out late in the European session.
With little else for the markets to consider on the economic data front, a pickup in confidence would be positive for the markets.
One curveball for the markets, however, is FED Chair Powell testimony that is due to be delivered after the European close.
There may be some caution, particularly following the bullish outlook on the economy and hawkish interest rate projections.
The Futures
In the futures markets, at the time of writing, the Dow Mini was up by 7 points, with the DAX up by 21 points.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Bob Masonauthor
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.
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