European Equities: FOMC Projections and Private Sector PMIs in Focus

The Majors

It was another bullish day for the European majors on Wednesday.

The CAC40 rose by 1.29% to lead the way, with the DAX30 and the EuroStoxx600 seeing gains of 1.03% and 0.99% respectively.

There were no major stats to distract the markets following a choppy start to the week, leaving FED monetary policy in focus.

With the markets expecting a firm timeline to begin tapering, uncertainty over the outlook for interest rates remained a test.

While FED uncertainty was a test, Evergrande news updates delivered support for riskier assets on the day. News hit the wires early in the day that Evergrande would meet interest payments, easing immediate concerns of a default.

The Stats

It’s a was a particularly quiet day on the Eurozone economic calendar. There were no major stats to provide the majors with direction on the day.

From the U.S

Economic data was limited to August housing sector numbers that had a muted impact on market risk sentiment.

The Market Movers

For the DAX: It was a bullish day for the auto sector on Wednesday. BMW and Daimler rallied by 3.46% and by 3.97%, respectively. Continental and Volkswagen also found support, ending the day up by 1.15% and by 2.51% respectively.

It was also a bullish day for the banks. Deutsche Bank and Commerzbank saw gains of 3.81% and 3.79% respectively.

From the CAC, it was a bullish day for the banks. Soc Gen and BNP Paribas rallied by 3.70% and by 3.50% respectively, with Credit Agricole up by 3.27%.

It was also a bullish day for the French auto sector. Stellantis NV and Renault ended the day up by 2.80% and by 3.60% respectively.

Air France-KLM rallied by 4.02%, with Airbus SE rising by 2.26%.

On the VIX Index

It was a 2^nd consecutive day in the red for the VIX on Wednesday.

Following a 5.25% fall from Tuesday, the VIX slid by 14.33% to end the day at 20.87.

The NASDAQ rose by 1.02%, with the Dow and S&P500 ending the day up by 1.00% and by 0.95% respectively.

 

The Day Ahead

It’s a busy day ahead on the Eurozone’s economic calendar.

From the Eurozone, prelim September private sector PMIs for France, Germany, and the Eurozone are due out later today.

With concerns lingering over the economic recovery, today’s figures will set the tone going into the final quarter of the year.

From the U.S, initial jobless claims and private sector PMIs will also draw interest, with the services PMI key.

While the stats will influence, the markets will also respond to the FED’s overnight monetary policy decision, press conference, and FOMC projections.

Away from the economic calendar, Evergrande will remain an area of interest.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 33 points.

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