It's a quiet day on the economic calendar. French business and consumer confidence figures will draw interest, however, along with any chatter from FOMC members.
GfK German Consumer Climate (Jun)
French Consumer Spending (MoM) (Apr)
French GDP (QoQ) (Q1) Final
French CPI m/m (May) Prelim
French HICP m/m (May) Prelim
It was mixed day for the European majors on Tuesday.
The CAC40 fell by 0.28%, while the DAX30 and EuroStoxx600 rose by 0.18% and by 0.03% respectively.
Economic data from the Eurozone provided support early in the day, with German’s IFO Business Climate Index on the rise.
Adding to the upside for the DAX30 early in the session was news of Vonovia SE (“VNA:GR”) agreeing to take over Deutsche Wohnen SE (“DWNI:GR”) in a multi-billion EUR deal. The DAX30 had hit a fresh record high on the news before easing back.
Economic data from the Eurozone included finalized GDP numbers and business sentiment figures from Germany.
In the 1st quarter, the German economy contracted by 1.8%, quarter-on-quarter, down from a prelim 1.7%. In the 4th quarter of last year, the economy had expanded by 0.5%.
According to Destatis,
Year-on-year, the economy contracted by 3.1%.
In May, the IFO Business Climate Index increased from 96.6 to 99.2. Economists had forecast an increase to 97.8.
Optimism improved, with the Business Expectations Index rising from 99.2 to 102.9. Assessment of current conditions also improved, with the Current Assessment Index climbing from 94.2 to 95.7.
Economists had forecast increases to 101.4 and to 95.5 respectively.
According to the IFO survey,
Consumer confidence was in focus.
In May, the CB Consumer Confidence Index slipped from 117.5 to 117.2. Economists had forecast an increase to 119.2.
According to the May survey,
For the DAX: It was a mixed day for the auto sector on Tuesday. Volkswagen rose by 1.52% to lead the way, with Continental and Daimler rising by 0.78% and by 0.96% respectively. BMW ended the day with a modest loss of 0.14%.
It was also mixed day for the banks. Deutsche Bank slid by 2.05%, while Commerzbank rose by 1.55%.
From the CAC, it was also a mixed day for the banks. BNP Paribas and Credit Agricole ended the day down by 0.36% and by 0.96% respectively. Soc Gen rose by 1.17%.
It was a bullish day for the French auto sector, however. Stellantis NV and Renault ended the day with gains of 0.56% and 0.18% respectively.
Air France-KLM rose by 0.80%, while Airbus SE fell by 1.14%.
A run of 3 consecutives day in the red came to an end for the VIX on Tuesday.
Partially reversing an 8.68% fall from Monday, the VIX rose by 2.39% to end the day at 18.84.
The NASDAQ slipped by 0.03%, with the Dow and the S&P500 ending the down by 0.24% and by 0.21% respectively.
It’s a quiet day ahead on the European economic calendar. There are no material stats from the Eurozone or the U.S to provide the majors with direction.
A lack of stats will place greater emphasis on business and consumer confidence figures from France.
From the U.S, expect any further FOMC chatter on the U.S economy and monetary policy to also draw interest.
On Tuesday, FOMC members talked of the need to begin discussing a tapering to the asset purchasing program in the coming months.
In the futures markets, at the time of writing, the Dow Mini was up by 47 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.