European Equities: German Economic Data in Focus

It’s going to be a choppy day ahead, with economic data out of the Eurozone and further reaction to U.S NFP numbers to influence.
Bob Mason
Light Board

Economic Calendar:

Monday, 8th July

  • German Industrial Production (MoM) (May)
  • German Trade Balance (May)

Thursday, 11th July

  • German CPI (MoM) (Jun) Final
  • French CPI (MoM) (Jun) Final
  • French HICP (MoM) (Jun) Final
  • ECB Monetary Policy Meeting Minutes

Friday, 12th July

  • Spanish CPI (YoY) (Jun) Final
  • Spanish HICP (YoY) (Jun) Final
  • Eurozone Industrial Production (MoM) (May)

The Majors

The majors saw red on Friday, with the DAX falling by 0.49%. The CAC40 and EuroStoxx600 fell by 0.38% and by 0.72% respectively.

In spite of the Friday losses, the European majors made solid gains at the start of the 3rd quarter. The DAX30 and EuroStoxx600 ended the week up by 1.37% and by 1.36% respectively. The CAC40 trailed, with a gain of 0.99%.

For the DAX30, Friday’s loss brought to an end a run of 7 consecutive days in the green.

The Stats

Economic data out of the Eurozone was on the lighter side on the day.

German factory orders provided direction in the early part of the day. While the service sector PMI numbers provided support mid-week, a 2.2% slide in factory orders in May weighed going into the European session.

According to Destatis,

  • Domestic orders increased by 0.7%, while foreign orders slid by 4.3% in May, month-on-month.
  • New orders from the Euro area were down by 1.7%, with new orders from other countries down by 5.7% compared with April 2019.
  • Factory orders fell by 8.6% year-on-year.

While the factory order numbers weighed, focus through the day was on the U.S nonfarm payrolls due out later in the session.

An unexpected jump in nonfarm payrolls in June added to the downward bias on the day. Nonfarm payrolls increased by 224k, coming in well ahead of a forecasted 160k increase.

The markets had priced in a 100% probability of a July rate hike. The latest NFP numbers tempered market expectations adding to the downside on the day.

The Market Movers

From the DAX, Deutsche Bank continued to find support, leading the way on the DAX with a 2.21% rally on the day. Commerzbank also found support, rising by 1.53%. The better than expected NFP numbers provided support to the financial sector on the day.

From the auto sector, Volkswagen remained unchanged on the day to lead the way. BWM slipped by just 0.04%, with Daimler and Continental down by 0.07% and 0.22% respectively.

From the CAC, BNP Paribas and Credit Agricole rose by 0.84% and 0.09% respectively, while Renault gained 0.37% on the day.

From the EuroStoxx600, UniCredit SpA saw red, in spite of the general uptrend across the global financial stocks, with a loss of 1.2% on the day. The loss came off the back of a 4.96% rally on Thursday, fuelled by news of Italy’s plans to curb debt.

The Day Ahead

It’s a relatively busy day ahead. German industrial production and trade figures for May are due out ahead of the European open.

We can expect the numbers to influence the majors in the early part of the day. While there are no material stats due out of the U.S this afternoon, we can expect any chatter from the Oval Office to also be of influence.

At the time of writing, the DAX was down by 21 points, with the Dow Mini was down by 28 points.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US