European Equities: Eurozone GDP and Inflation and U.S Stats in Focus

The Majors

It was a mixed day for the European majors on Thursday.

The DAX30 slipped by 0.06%, while the CAC40 and the EuroStoxx600 ended the day up by 0.75% and by 0.15% respectively.

A further pickup in inflationary pressure and earnings offset upbeat unemployment figures from German, leaving the DAX30 in the red. The ECB and earnings from elsewhere supported the rest of the majors, however.

Key from the ECB was an unchanged view on inflation, in spite of a marked rise in German and Spanish consumer prices in October.

From the U.S, weaker than expected economic growth had a relatively muted impact on the majors, with the ECB in focus.

The Stats

In October, Germany’s unemployment rate fell from 5.5% to 5.4%, following a 39k decline unemployment. Unemployment had fallen by 30k in September.

More significantly, however, was a 0.5% increase in German consumer prices in October. Germany’s annual rate of inflation accelerated from 4.1% to 4.5%, according to prelim figures.

On the monetary policy front, the ECB left policy unchanged, which was in line with expectations. Key was the ECB’s view on inflation. The ECB continued to stand by its transitory view on inflation, paring any expectations of a near-term shift on interest rate policy.

From the U.S

It was a mixed day on the economic data front.

The U.S economy expanded by 2%, quarter-on-quarter, in the 3^rd quarter, falling short of expectations. In the previous quarter, the economy had expanded by 6.7%.

Jobless claims were positive, however. In the week ending 22^nd October, initial jobless claims fell from 291k to 281k.

The Market Movers

For the DAX: It was another mixed day for the auto sector on Thursday. Volkswagen slid by 4.19% off the back of weaker than expected earnings and a negative outlook on deliveries. BMW and Daimler also saw red, falling by 1.30% and by 0.14% respectively. Continental bucked the trend, however, rising by 0.97%.

It was another bearish day for the banks. Deutsche Bank fell by 0.36%, with Commerzbank ending the day down by 1.67%.

From the CAC, it was a relatively bearish day for the banks. Credit Agricole declined by 0.15%, with BNP Paribas and Soc Gen ending the day down by 0.62% and 0.79% respectively.

It was also a bearish day for the French auto sector. Stellantis NV and Renault fell by 2.33% and by 1.39% respectively.

Air France-KLM and Airbus SE found support, however, rising by 0.30% and by 1.82% respectively.

On the VIX Index

It was back into the red for the  VIX on Thursday.

Partially reversing a 6.26% rise from Wednesday, the VIX fell by 2.65% to end the day at 16.53.

The NASDAQ rallied by 1.39%, with the Dow and the S&P500 rising by 0.68% and 0.98% respectively.