European Equities: German and Eurozone Consumer Sentiment in Focus

The Majors

It was a bearish start to the week for the European majors on Monday. The CAC40 fell by 0.82%, with the DAX30 and the EuroStoxx600 sliding by 1.88% and by 1.38% respectively.

There were no major stats from the Eurozone or the U.S to provide the majors with direction. The lack of stats left market sentiment towards the continued rise in new COVID-19 cases to weigh. News of new government restrictions to curb the spread of the Omicron strain tested support for riskier assets on the day.

The Stats

There were no stats from the Eurozone to provide the majors with direction.

From the U.S

There were also no major stats from the U.S to provide the European majors with direction late in the session.

The Market Movers

For the DAX: It was a bearish day for the auto sector on Monday. Continental led the way down sliding by 3.36%, with Volkswagen and Daimler seeing losses of 2.26% and 2.87% respectively. BMW ended the day down by a more modest 1.82%.

It was a mixed day for the banks, however. Deutsche Bank fell by 2.06%, while Commerzbank rose by 0.11%.

From the CAC, it was also a mixed day for the banks. BNP Paribas rose by 0.45%, while Credit Agricole and Soc Gen fell 0.92% and by 1.06% respectively.

The French auto sector also struggled. Stellantis NV and Renault ended the day down by 2.91% and by 3.26% respectively.

Air France-KLM and Airbus SE saw losses of 0.97% and 2.00% respectively.

On the VIX Index

It was a 3^rd consecutive day in the green for the  VIX on Monday.

Following a 4.86% gain on Friday, the VIX rose by 6.03% to end the day at 22.87.

The S&P500 fell by 1.14%, with the Dow and the NASDAQ declining by 1.23% and by 1.24% respectively.

The Day Ahead

It’s a relatively quiet day ahead on the Eurozone’s economic calendar. Going into the European open, Germany’s GfK Consumer Climate figures for January will be in focus. With the German government, along with other member states, introducing new COVID-19 restrictions, a fall in confidence would test EUR support. Late in the European session, flash Eurozone consumer confidence figures will also influence.

From the U.S, there are no major stats to consider, leaving central bank chatter to also provide direction.

Away from the economic calendar, with the holidays approaching, expect continue market sensitivity to COVID-19 news updates.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 153 points.

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