European Equities: Evergrande, ECB President Lagarde, and U.S Stats in Focus
Tuesday, 28th September
GfK German Consumer Climate (Oct)
Wednesday, 29th September
Spanish HICP (YoY) (Sep) Prelim
Thursday, 30th September
French Consumer Spending (MoM) (Aug)
German Unemployment Change (Sep)
German Unemployment Rate (Sep)
Italian CPI (MoM) (Sep) Prelim
Eurozone Unemployment Rate (Aug)
German CPI (MoM) (Sep) Prelim
Friday, 1st October
German Retail Sales (MoM) (Aug)
Spanish Manufacturing PMI (Sep)
Italian Manufacturing PMI (Sep)
French Manufacturing PMI (Sep) Final
German Manufacturing PMI (Sep) Final
Eurozone Manufacturing PMI (Sep) Final
Eurozone CPI (YoY) (Sep) Prelim
It was a bearish end to the week for the European majors on Friday, with the majors logging a 2nd loss of the week.
The DAX30 fell by 0.72%, with the CAC40 and the EuroStoxx600 seeing losses of 0.95% and 0.90% respectively.
Disappointing business sentiment figures from Germany pegged the majors back on the day.
Following Thursday’s Evergrande and FED driven relief rally, the mood soured at the end of the week. Uncertainty over Evergrande’s future remained going into the weekend.
Germany’s IFO Business Climate Index fell from 99.6 to 98.8, with the Current Assessment sub-index down from 101.4 to 100.4. The Business Expectations sub-index declined from 97.5 to 97.3.
From the U.S
Economic data was limited to housing sector data for August, which had a muted impact on the majors.
The Market Movers
For the DAX: It was a mixed day for the auto sector on Friday. BMW slipped by 0.09% to buck the trend on the day. Daimler rallied by 1.80% to lead the way, however, with Continental and Volkswagen ending the day up by 0.02% and by 0.08% respectively.
It was a bullish day for the banks. Deutsche Bank and Commerzbank saw gains of 1.69% and 1.20% respectively.
From the CAC, it was a bullish day for the banks. BNP Paribas and Credit Agricole rose by 0.80% and by 0.24% respectively, with Soc Gen up by 1.11%.
It was also a bullish day for the French auto sector. Stellantis NV and Renault ended the day up by 0.12% and by 2.37% respectively.
Air France-KLM rallied by 3.09%, while Airbus SE fell by 1.10%.
On the VIX Index
It was a 4th consecutive day in the red for the VIX on Friday.
Following a 10.73% slide from Thursday, the VIX fell by 4.72% to end the day at 17.75.
The NASDAQ slipped by 0.03%, while the Dow and S&P500 ended the day up by 0.10% and by 0.15% respectively.
The Day Ahead
It’s a quiet day ahead on the Eurozone’s economic calendar.
There are no material stats due out of the Eurozone to provide the majors with direction. On the monetary policy front, ECB President Lagarde is scheduled to speak. Expect any comments on the economic outlook and monetary policy to provide direction.
Later in the day, durable and core durable goods from the U.S will influence later in the day. A further pickup in core durable goods orders would deliver support.
Away from the economic calendar, Evergrande news will continue to be an area of interest.
In the futures markets, at the time of writing, the Dow Mini was up by 144 points.
For a look at all of today’s economic events, check out our economic calendar.