It's a relatively busy day ahead on the economic calendar. Stats from the Eurozone and the U.S will be in focus ahead of Wednesday's FOMC meeting minutes.
German ZEW Current Conditions (Feb)
German ZEW Economic Sentiment (Feb)
Eurozone GDP (QoQ) (Q4) 2nd Estimate
Eurozone GDP (YoY) (Q4) 2nd Estimate
Eurozone ZEW Economic Sentiment (Feb)
Eurozone Consumer Confidence (Flash)
ECB Monetary Policy Meeting Minutes
French CPI (MoM) (Jan) Final
French HICP (MoM) (Jan) Final
French Manufacturing PMI (Feb) Prelim
French Services PMI (Feb) Prelim
German Manufacturing PMI (Feb) Prelim
German Services PMI (Feb) Prelim
Italian CPI (MoM) (Jan) Final
Eurozone Manufacturing PMI (Feb) Prelim
Eurozone Markit Composite PMI (Feb) Prelim
Eurozone Services PMI (Feb) Prelim
It was a relatively bullish start to the week for the European majors on Monday. The CAC40 and EuroStoxx600 rallied by 1.45% and by 1.32% respectively, while the DAX30 saw a more modest 0.42% gain.
Economic data from the Eurozone delivered mixed results, which left market optimism towards a speedy economic recovery to drive the majors.
The bullish sentiment towards what lies ahead supported the banking sector and commodities in particular.
It was a relatively busy day on the economic calendar. Economic data included industrial production and trade data for the Eurozone.
In December, industrial production fell by 1.6%, partially reversing a 2.6% increase from November. Economists had forecast a 1.0% decline.
Year-on-year, production was down by 0.8%, which was worse than a forecasted 0.3% decline and November’s 0.6% fall.
According to Eurostat,
While industrial production figures disappointed, trade data provided support to the European majors.
In December, the trade surplus widened from €25.7bn to €29.2bn. Economists had forecast a narrowing to €25.3bn.
According to Eurostat.
There were no material stats to provide the majors with direction later in the session with the U.S markets closed.
For the DAX: It was mixed day for the auto sector on Monday. BMW and Volkswagen rose by 0.76% and by 0.66% respectively, with Daimler gaining 0.46%. Continental bucked the trend, however, with a 0.08% loss.
It was another bullish day for the banks. Deutsche Bank and Commerzbank ended the day up by 2.02% and by 2.03% respectively.
From the CAC, it was a particularly bullish day for the banks. BNP Paribas and Credit Agricole rose by 2.30% and by 2.02% respectively. Soc Gen led the way, however, surging by 6.46%.
It was also a bullish day for the French auto sector. Stellantis NV and Renault saw gains of 0.89% and 0.28% respectively.
Air France-KLM and Airbus SE found further support, rising by 1.52% and by 1.58% respectively.
The stock of the day, however, was Vivendi SE, which surged by 19.62%. News of the group planning to list Universal Music Group and share 60% of the company’s share capital to shareholders delivered the upside on the day.
The U.S markets were closed for President’s Day
It’s a busier day ahead on the European economic calendar. Key stats include ZEW Economic Sentiment figures for Germany and the Eurozone.
2nd estimate GDP numbers for the 4th quarter are also due out for the Eurozone.
Expect both sets of numbers to draw interest later this morning.
From the U.S, NY Empire State Manufacturing Index figures will also draw interest late in the European session.
Away from the economic calendar, chatter from Capitol Hill and news updates on vaccinations and COVID-19 will also need monitoring.
In the futures markets, at the time of writing, the Dow Mini was up by 186 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.