European Equities: Eurozone Industrial Production and U.S Consumer Sentiment in Focus

Early in the European session, the ECB’s Economic Bulletin did draw plenty of interest, however.

Away from the economic calendar, corporate earnings and news of Evergrande avoiding a default were also market positive.

The Stats

There were no major stats to consider on Thursday.

The ECB’s Economic Bulletin was in focus, however.

Economic Bulletin

Salient points from the Economic Bulletin included:

• At the global level, economic activity continued to expand, albeit at a measurably moderating pace.
• A combination of factors, most prominently persistent supply bottlenecks impacted.
• Price pressures remain elevated on account of increasing food an energy inflation.
• The euro area economy continued to recover strongly, although momentum moderated to some extent.
• Output is expected to exceed its pre-pandemic level by the end of the year.
• A high share of people now vaccinated is supporting consumer spending, though higher energy prices may reduce purchasing power in the months to come.
• While the current phase of higher inflation will last longer than originally expected, inflation is expected to decline in the course of the next year.
• The Governing Council sees the risks to the economic outlook as broadly balanced.
• If supply shortages and higher energy prices last longer, these could slow the recovery.
• Economic activity could outperform current expectations if consumers become more confidence and save less than currently expected.

From the U.S

There were no major stats to provide the majors with direction following Wednesday’s inflation figures.

The Market Movers

For the DAX: It was another mixed day for the auto sector on Thursday. BMW rose by 0.52%, with Volkswagen (+0.05%) also avoiding the red. Continental slid by 3.41%, however, with Daimler ending the day down by 0.82%.

It was a bullish day for the banks. Deutsche Bank rose by 0.68%, with Commerzbank gaining 1.86%.

From the CAC, it was a bullish day for the banks. BNP Paribas rose by 0.47%, with Credit Agricole and Soc Gen ending the day up by 0.26% and by 0.24% respectively.

It was a bearish day for the French auto sector, however. Stellantis NV slipped by 0.30%, with Renault sliding by 4.01%.

Air France-KLM also struggled, declining by 3.46%, with Airbus SE ending the day with a 1.29% loss.

On the VIX Index

It was back into the red for the  VIX on Thursday, which saw a 5 session losing streak come to an end.

Reversing a 5.34% fall from Wednesday, the VIX fell by 5.71% to end the day at 17.66.

The Dow fell by 0.44%, while the NASDAQ and the S&P500 ended the day up by 0.52% and by 0.06% respectively.

The Day Ahead

It’s a relatively quiet day ahead on the Eurozone’s economic calendar. September industrial production figures for the Eurozone are due out and will provide the majors with direction.

Finalized October inflation figures for France and Spain should have a muted impact, however.

From the U.S, JOLT’s job openings and consumer sentiment figures will also draw attention later in the day.

Away from the economic calendar, corporate earnings and commodity prices will also remain key drivers. Expect any central bank chatter to also garner interest following this week’s inflation figures from China and the U.S.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 39 points.

For a look at all of today’s economic events, check out our economic calendar.