European Equities: Expect A Particularly Quiet Day Ahead

Expect a particularly quiet day ahead, with the DAX30 closed and the other European majors on a half-day.
Bob Mason
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Economic Calendar:

Friday, 27th December 2019

  • ECB Economic Bulletin

The Majors

It was a mixed day as the holidays begin. The DAX30 and EuroStoxx600 fell by 0.16% and by 0.03% respectively, while the CAC40 rose by 0.13% to buck the trend.

There were no stats from the Eurozone or from the Asian session, earlier in the day, to provide direction.

If there was a bourse to suffer on any given day, it was the DAX30 once more, with ongoing woes in the manufacturing sector weighing.

Following the recent run, profit-taking ahead of the holidays contributed to the lackluster start to the week.

On the geopolitical front, there were further positive comments on trade but even that wasn’t enough to deliver a holiday rally.

Reports hit the Chinese news wires on Monday that the government is to cut tariffs on 850 U.S products.

The Stats

It was a quiet day on the Eurozone economic calendar on Monday. There were no material stats from the Eurozone to provide the European majors with direction.

From the U.S, November’s new home sales figures had a muted impact on the day.

With the U.S and China reaching a phase 1 agreement that is due to be signed in early January, it will now boil down to what impact this will have on the Eurozone economy…

The Market Movers

For the DAX: It was a bearish day for the auto sector. BMW led the way, sliding by 1.98%, with Continental, Daimler, and Volkswagen seeing more modest losses of 0.43%, 0.45%, and 0.57% respectively.

It was also a bearish day for the banks. Commerzbank slid by 2.74%, with Deutsche Bank down by 1.47%.

From the CAC, it was a bearish day for the banks. BNP Paribas led the way, falling by 0.84%. Credit Agricole and Soc Gen fell by 0.42% and by 0.67% respectively.

Things were not much better for the French auto sector, with Peugeot and Renault falling by 1.21% and by 1.60% respectively.

On the VIX Index

The VIX saw green on Monday, rising by 0.8% gain. Following on from a 0.08% gain on Friday, the VIX ended the day at $12.6.

The upside on the day came in spite of the U.S majors closing out the day in positive territory and the news wires delivering upbeat comments from China on trade.

With the holiday season now kicking off, there was some caution evident.

The Day Ahead

It’s another particularly quiet day on the Eurozone economic calendar. There are no material stats due out of the Eurozone to provide the European majors with direction.

With a lack of stats and a shorted trading session for CAC40 and EuroStoxx600, there are unlikely to be any major moves. Volumes will be on the lighter side with the German markets closed until Friday’s European open.

From the U.S, there are also no material stats to consider.

On the geopolitical front, there will need to be something particularly material to impact the majors through the morning.

In the futures markets, at the time of writing, the Dow was up by 5 points.

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