Economic Calendar
Wednesday, 6th October
German Factory Orders (MoM) (Aug)
German IHS Markit Construction PMI (Sep)
Eurozone Retail Sales (MoM) (Aug)
Thursday, 7th October
German Industrial Production (MoM) (Aug)
Friday, 8th October
German Trade Balance (Aug)
The Majors
It was a bullish day for the European majors on Tuesday.
The CAC40 rallied by 1.52%, with the EuroStoxx600 and the DAX30 ending the day with gains of 1.17% and 1.05% respectively.
Economic data from the Eurozone and the U.S provided the majors with support, with bank stocks on the move.
The Stats
It was a busy day on the Eurozone economic calendar.
Key stats included service sector PMIs for Italy and Spain and finalized PMIs for France, Germany, and the Eurozone.
Member Stats
Italy’s Services PMI fell from 58.0 to 55.5 versus a forecasted 56.5, with Spain’s down from 60.1 to 56.9. Economists had forecast a PMI of 58.0.
Finalized numbers from France and Germany also disappointed.
The French Services PMI slipped from 56.3 to 56.2, which was up from a prelim 56.0.
Germany’s Services PMI slid from 60.8 to 56.2 in September, which was up from a prelim 56.0.
The Eurozone
As a result of the better numbers from France and Germany, the Eurozone’s Services PMI fell from 59.0 to 56.4 which was up from a prelim 56.3.
In September, the Composite PMI declined from 59.0 to 56.2, which was up from a prelim 56.1.
Key takeaways from the finalized Markit Survey:
- Euro area economic growth moderated for a 2nd consecutive month.
- There were softer rates of expansion in both new orders and employment.
- Businesses’ output expectations were the least optimistic since February.
- Significantly, inflationary trends moved higher, with input prices rising at the joint fastest pace on record.
- Output prices rose at a pace which was only surpassed by those seen in June and July.
Rankings
- Ireland ranked 1st with a 5-month low composite of 61.5 followed by Spain (57.0).
- Italy came in 3rd, with a 4-month low 56.6.
- Germany ranked 4th, with a 7-month low 55.5 followed by France that sat at the bottom of the table with a 5-month low composite of 55.3.
From the U.S
Private sector PMIs and trade data were in focus, with the market’s favored ISM Non-Manufacturing PMI the key stat of the day.
In September, the ISM Non-Manufacturing PMI rose from 61.7 to 61.9.
The Market Movers
For the DAX: It was a mixed day for the auto sector on Tuesday. Continental fell by 0.66% to buck the trend on the day. Volkswagen rose by 1.02%, however, to lead the way, with BMW and Daimler both ending the day up by 0.34%.
It was a bullish day for the banks, however. Deutsche Bank and Commerzbank rallied by 3.56% and by 2.92% respectively.
From the CAC, it was a bullish day for the banks. BNP Paribas and Soc Gen ended the day up by 4.62% and by 4.34% respectively. Credit Agricole led the way, rallying by 5.67%.
It was a mixed day for the French auto sector, however. Stellantis NV slid by 4.71%, while Renault rose by 1.36%.
Air France-KLM fell by 2.09%, while Airbus SE ended the day up by 1.25%.
On the VIX Index
It was a back into the red for the VIX on Tuesday.
Partially reversing an 8.56% rise from Monday, the VIX fell by 7.23% to end the day at 21.30.
The NASDAQ rose by 1.25 %, with the Dow and S&P500 ending the day up by 0.92% and by 1.05% respectively.
The Day Ahead
It’s a relatively busy day ahead on the Eurozone’s economic calendar. German factory orders and Eurozone retail sales will be the key stats of the day.
While consumer spending is key from an ECB perspective, factory orders will likely have greater influence amidst growth concerns.
From the U.S, ADP Nonfarm Employment Change figures for September will also influence later in the day.
Away from the economic calendar, China and Evergrande news updates along with central bank chatter will also need monitoring.
The Futures
In the futures markets, at the time of writing, the Dow Mini was up by 15 points.
For a look at all of today’s economic events, check out our economic calendar.
