European Equities: German and U.S Stats and Corporate Earnings in Focus
Wednesday, 26th October
German GfK Consumer Confidence (Nov)
Thursday, 27th October
Spanish HICP (YoY) (Oct) Prelim
German Unemployment Change (Oct)
German Unemployment Rate (Oct)
ECB Interest Rate Decision (Oct)
German CPI (MoM) (Oct) Prelim
ECB Press Conference
Friday, 29th October
French Consumer Spending (MoM) (Sep)
French GDP (QoQ) (Q3) 1st Estimate
German GDP (QoQ) (Q3) 1st Estimate
German GDP (YoY) (Q3) 1st Estimate
Spanish GDP (QoQ) (Q3) 1st Estimate
Italian CPI (MoM) (Oct) Prelim
Eurozone CPI y/y (Oct) Prelim
Eurozone GDP q/q (Q3) 1st Estimate
Eurozone GDP y/y (Q3) 1st Estimate
It was a bullish day for the European majors on Tuesday.
The DAX30 rallied by 1.01% to lead the way, with the CAC40 and the EuroStoxx600 ending the day up by 0.80% and by 0.85% respectively.
With no major stats from the Eurozone to consider, the majors were in the hands of corporate earnings and U.S economic data.
Travel and auto stocks delivered support on the day, while bank stocks struggled in spite of solid earnings from UBS.
A marked increase in U.S consumer confidence was also a positive for the majors on the day.
There were no major stats from the Eurozone to provide direction.
From the U.S
Consumer confidence was in focus late in the European session.
In October, the CB Consumer Confidence Index jumped from a revised 109.8 to 113.8.
According to the October survey,
- The Present Situation Index rose from 144.3 to 147.4, with the Expectations Index up from 86.7 to 91.3.
- While short-term inflation concerns hit a 13-year high, the impact on confidence was muted.
- The proportion of consumers planning to purchase, homes, cars, and major appliances increased in October.
- Nearly half of respondents said they intend to take a vacation within the next 6-months. This was the highest level since Feb-2020.
The Market Movers
For the DAX: It was a bullish day for the auto sector on Tuesday. Continental rallied by 1.91% to lead the way, with BMW rising by 0.93%. Daimler and Volkswagen ended the day more modest gains of 0.01% and 0.51% respectively.
It was also a mixed day for the banks. Deutsche Bank rallied by 1.93%, while Commerzbank slipped by 0.46%.
From the CAC, it was a mixed day for the banks. Soc Gen rose by 0.03%, while BNP Paribas and Credit Agricole fell by 0.05% and 0.12% respectively.
It was a bullish day for the French auto sector, however. Stellantis NV rose by 0.33%, with Renault gaining 1.73%.
Air France-KLM and Airbus SE ended the day up by 1.42% and by 1.72% respectively.
On the VIX Index
It was back into the green for the VIX on Tuesday.
Reversing a 1.23% loss on Monday, the VIX rose by 4.86% to end the day at 15.98.
The S&P500 rose by 0.18%, with the Dow and the NASDAQ ending the day up by 0.04% and 0.06% respectively.
The Day Ahead
It’s a relatively quiet day ahead on the Eurozone’s economic calendar. German consumer confidence figures will be in focus ahead of the European open.
With the markets looking ahead to Thursday’s ECB monetary policy decision, we can expect sensitivity to the numbers.
Later in the day, U.S durable goods orders and core durable goods orders will also provide direction.
Away from the economic calendar, corporate earnings will continue to influence.
In the futures markets, at the time of writing, the Dow Mini was down by 5 points.
For a look at all of today’s economic events, check out our economic calendar.