Finalized Eurozone inflation figures are due out later today. While the numbers will draw attention, the FOMC meeting minutes will be a consideration...
Eurozone Core CPI (YoY) (Apr) Final
Eurozone CPI (MoM) (Apr) Final
Eurozone CPI (YoY) (Apr) Final
French Manufacturing PMI (May) Prelim
French Services PMI (May) Prelim
German Manufacturing PMI (May) Prelim
German Services PMI (May) Prelim
Eurozone Manufacturing PMI (May) Prelim
Eurozone Markit Composite PMI (May) Prelim
Eurozone Services PMI (May) Prelim
It was a mixed day for the European majors on Tuesday, with the EuroStoxx600 managing to recover Monday’s modest loss.
The CAC40 and the DAX30 fell by 0.07% and by 0.21% respectively, while the EuroStoxx600 ended the day up by 0.28%.
Unwavering market optimism delivered yet more support for the majors. Reopening plans were the story of the day, providing the EuroStoxx600 a boost, while economic data from the Eurozone pegged the majors back.
Ahead of the FOMC meeting minutes, due out after today’s European close, inflation concerns were also a drag on riskier assets.
From the U.S, stats were limited to housing sector data that had a muted impact on the European majors late in the day.
After a quiet start to the week, the Eurozone’s economy was back in focus this morning.
Economic data included 2nd estimate GDP numbers and March trade data for the Eurozone.
In the 1st quarter, the Eurozone economy contracted by 0.6%, quarter-on-quarter. Year-on-year, the economy contracted by 1.8%. Both were in line with 1st estimates.
Please see here for the Eurostat report.
In March, the Eurozone’s trade surplus narrowed from €17.7bn to €15.8bn. Economists had forecast a widening to €26.5bn.
According to Eurostat,
It was a quiet day on the economic calendar on Tuesday. Housing sector data for April were in focus that had a muted impact on the majors late in the European session.
For the DAX: It was a mixed day for the auto sector on Tuesday. Continental rose by 0.94%, with Daimler and Volkswagen seeing gains of 0.28% and 0.56% respectively. BMW slipped by 0.02%, however.
It was also a mixed day for the banks. Deutsche Bank fell by 0.37%, while Commerzbank ended the day up by 0.62%.
From the CAC, it was a mixed day for the banks. BNP Paribas rose by 0.16%, while Credit Agricole and Soc Gen saw losses of 0.78% and 0.13% respectively.
It was also a mixed day for the French auto sector. Stellantis NV fell by 0.21%, while Renault gained 0.16% on the day.
Air France-KLM and Airbus SE avoided more red, with gains of 2.34% and 0.25% respectively.
It was a 2nd consecutive day in the green for the VIX on Tuesday.
Following on from a 4.84% gain from Monday, the VIX rose by 7.91% to end the day at 21.31.
The NASDAQ slipped by 0.56%, with the Dow and the S&P500 ending the day down by 0.78% and by 0.85% respectively.
It’s a quieter day ahead on the European economic data front. Finalized April inflation figures for the Eurozone are due out later today.
Barring any marked upward revisions from prelim figures, however, the numbers should have a muted impact on the majors.
From the U.S, there are no material stats to distract the markets, with the focus likely to be on the FOMC meeting minutes due out after the European close.
Market jitters over a marked pickup in inflationary pressure linger and the markets will be looking for further assurance of status quo from the minutes. For the European majors, a degree of uncertainty over the minutes could be a drag.
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.