The majors are set for a positive start to the day off the back of Monday's slide. Stats will need to support, however...
German GDP (YoY) (Q4) 2nd Estimate
German GDP (QoQ) (Q4) 2nd Estimate
France Jobseekers Total
Spanish HICP (YoY) (Feb) Prelim
Spanish HICP (YoY) (Feb) Prelim
Eurozone Consumer Confidence (Feb) Final
French Consumer Spending (MoM) (Jan)
French GDP (QoQ) (Q4) 2nd Estimate
German Unemployment Change (Feb)
German Unemployment Rate (Feb)
Italian CPI (MoM) (Feb) Prelim
German CPI (MoM) (Feb) Prelim
It was a particularly bearish start to the week for the European majors, with market fear over the spread of the coronavirus doing the damage.
The DAX30 led the way, sliding by 4.01%, with the CAC40 and EuroStoxx600 falling by 3.94% and by 3.79% respectively.
Economic data took a back seat on the day as a spike in cases in South Korea and Italy raised the possibility of a global pandemic.
It was a relatively quiet day on the Eurozone economic calendar on Monday. Economic data included Germany’s IFO Business Climate Index figures for February.
According to the February survey,
The slight uptick had little to no impact on the DAX30 and risk appetite in general, however.
There were also no material stats from the U.S to influence later in the day.
For the DAX: it was a particularly bearish day for the auto sector on Monday. Daimler led the way tumbling by 6.43%, with Volkswagen down by 5.89%. BMW and Continental saw marginally more modest losses of 5.20% and 4.15% respectively.
It was also a bearish day for the banks. Commerzbank slid by 6.04%, with Deutsche Bank down by 5.74%.
Deutsche Lufthansa also saw red, tumbling by 7.80%, with the spread of the coronavirus particularly bad news for the airline industry.
From the CAC, it was a bearish day for the banks. BNP Paribas slid by 3.80%, with Credit Agricole and Soc Gen falling by 3.35% and by 3.64% respectively.
The auto sector also struggled at the start of the week. Renault slid by 6.63, with Peugeot ending the day down by 6.97%.
Air France-KLM took yet another hit on Monday, sliding by 8.78%.
The VIX surged by 46.55% on Monday. Following on from a 9.77% gain on Friday, the VIX ended the day at 25.0.
A particularly bearish day drove the VIX to its highest level since 3rd January of last year.
Market reaction to the spread of the coronavirus weighed heavily on the global equity markets, with the S&P500 sliding by 3.35%.
It’s another relatively quiet day ahead on the Eurozone economic calendar on Tuesday. Economic data includes Germany’s 2nd estimate GDP numbers for the 4th quarter.
Expect any revision from 1st estimates to influence early in the day.
From the U.S, consumer confidence figures will also provide direction, with the futures pointing to a positive open as investors go bargain hunting.
In the futures markets, at the time of writing, the DAX was up by 70.5 points, with the Dow up by 168 points.
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.