European Equities: German and U.S Stats and Corporate Earnings in Focus

The Majors

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.

The Stats

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.