It's a particularly quiet day ahead on the economic calendar, with no major stats to provide the majors with direction. The lack of stats will leave corporate earnings and COVID-19 news in focus.
Eurozone Sentix Investor Confidence (May)
German ZEW Current Conditions (May)
German ZEW Economic Sentiment (May)
Eurozone ZEW Economic Sentiment (May)
German CPI (MoM) (Apr) Final
French CPI (MoM) (Apr) Final
French HICP (MoM) (Apr) Final
Eurozone Industrial Production (MoM) (Mar)
Spanish CPI (YoY) (Apr) Final
Spanish HICP (YoY) (Apr) Final
It was a bullish end to the week for the European majors on Friday following a mixed session on Thursday.
The EuroStoxx600 rose by 0.99% to close out the week at a record high, with the CAC40 gaining 0.45%. Leading the way, however, was the DAX30, which ended the day up by 1.34%.
Economic data and corporate earnings from Germany delivered the upside for the DAX30 on the day.
Hopes of a swifter economic recovery amidst pickup in vaccination rates across the EU also supported the broader market.
It was a relatively busy day on the Eurozone economic calendar on Friday.
German industrial production and trade data for March were the key stats from the Eurozone.
Industrial production increased by 2.5% in March, reversing a revised 1.9% decline from February. Economists had forecast a 2.3% rise.
According to Destatis,
In March, Germany’s trade surplus narrowed from €18.9bn to €14.3bn. Economists had forecast a widening to €19.5bn.
According to Destatis,
Trade with EU countries:
Trade with non-EU countries:
Trade with the UK:
Others:
Labor market numbers were back in focus on Friday.
In April, nonfarm payrolls rose by just 266K, falling well short of a forecasted 978k rise. The participation rate ticked up from 61.5% to 61.7%, contributing to a rise in the unemployment rate from 6.0% to 6.1%.
The only positive was a pickup in wage growth at the turn of the quarter. In the April month, average hourly earnings jumped by 0.7%, reversing a 0.1% decline from March.
For the DAX: It was a mixed day for the auto sector on Friday. Continental rose by 1.91%, with Daimler and BMW gaining 0.61% and 0.02% respectively. Volkswagen fell by 0.94%, however, to buck the trend.
It was also a mixed day for the banks. Deutsche Bank rose by 1.07%, while Commerzbank ended the day down by 0.43%.
Leading the way on the day was Adidas AG, which jumped by 7.99% following an upward revision to its current year outlook.
From the CAC, it was a relatively bearish day for the banks. Credit Agricole fell by 1.67%, with BNP Paribas and Soc Gen seeing losses of 0.24% and 0.06% respectively.
It was a mixed day for the French auto sector. Stellantis NV rose by 0.19%, while Renault ended the day down by 0.70%.
Air France-KLM founded much-needed support, rallying by 4.14%, with Airbus SE rising by 1.67%.
It was a third consecutive day in the red for the VIX on Friday, marking a 4th day in the red from 7 sessions.
Following on from a 3.97% fall on Thursday, the VIX slid by 9.24% to end the day at 16.69.
The NASDAQ rose by 0.88%, with the Dow and the S&P500 gaining 0.66% and 0.74% respectively.
It’s a particularly quiet day ahead on the European economic calendar. There are no material stats from the Eurozone or the U.S to provide the European majors with direction.
The lack of stats will leave the European majors in the hands of corporate earnings and COVID-19 news from the weekend in focus.
Expect the European majors to take their cues from the U.S markets late in the session.
In the futures markets, at the time of writing, the Dow Mini was up by 29 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.