It's a busier day ahead on the economic calendar. While the stats will influence, corporate earnings and yields will also need monitoring.
Eurozone CPI (YoY) (Dec) Final
Eurozone CPI (MoM) (Dec) Final
It was a bullish day for the European majors on Wednesday. The CAC40 rose by 0.55%, with the DAX and the EuroStoxx600 ending the day with gains of 0.24% and 0.23% respectively.
Economic data was on the lighter side on the day, with key stats limited to finalized inflation figures from Germany. The lack of stats left the majors under pressure, with market angst over FED monetary policy remaining a key driver.
The upside on the day came in spite of the U.S equity markets continuing their decline amidst rising U.S Treasury yields.
In December, German consumer prices rose by 0.5%, which was in line with prelim figures. Consumer prices had fallen by 0.2% in the month of November.
According to Destatis,
Stats were limited to housing sector numbers that had a muted impact on the majors.
For the DAX: It was another mixed day for the auto sector on Wednesday. Volkswagen rose by 0.62% to buck the trend. Continental and BMW fell by 1.51% and by 1.09% respectively, with Daimler ending the day down by 0.19%.
It was also a mixed day for the banks. Deutsche Bank fell by 1.19%, while Commerzbank ended the day up by 0.41%.
From the CAC, it was a bearish day for the banks. Soc Gen slid by 1.89%, with Credit Agricole and BNP Paribas seeing losses of 0.94% and 0.92% respectively.
The French auto sector had a bullish session, however. Stellantis NV and Renault ended the day up by 0.23% and 0.50% respectively.
Air France-KLM slid by 3.44%, with Airbus SE declining by 0.66%.
It was a second consecutive day in the green for the VIX on Wednesday.
Following an 18.76% surge on Tuesday, the VIX rose by 4.65% to end the day at 23.85.
The NASDAQ slid by 1.15%, with the Dow and the S&P500 seeing losses of 0.96% and 0.97% respectively.
It’s a relatively busy day ahead on the Eurozone’s economic calendar. Finalized Eurozone inflation figures for December are due out along with German wholesale inflation figures. With inflation a key area of focus, expect the numbers to draw attention.
Later in the day, U.S weekly jobless claims and Philly FED Manufacturing numbers for January will also provide direction.
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.