The German economy is back in focus today, with industrial production and trade data due out. Following fresh highs on Thursday, the majors will need support to go higher.
German Industrial Production (MoM) (Feb)
German Trade Balance (Feb)
It was a relatively bullish day for the European majors on Thursday, after Wednesday’s relatively bearish session.
The CAC40 and the EuroStoxx600 rose by 0.57% and by 0.58% respectively, with the DAX30 gaining by 0.17%.
It was fresh highs for the majors on Thursday, with the FOMC meeting minutes from late Wednesday delivering support.
Following the FOMC economic projections and FED Chair Powell’s testimonies, the minutes reaffirmed Powell’s assurances. Low for longer was good enough to drive the European majors to fresh record highs.
The ECB meeting minutes also affirmed the intent to ramp up bond purchases near-term to address rising yields.
It was a quiet day on the economic calendar on Thursday. The German economy was back in focus with factory orders in focus.
In February, factory orders increased by 1.2% month-on-month, which was in line with forecasts. In January, orders had risen by 1.4%.
According to Destatis,
On the monetary policy front, the ECB monetary policy meeting minutes were also in focus.
Salient points from the monetary policy considerations and policy options included:
It was another quiet day on the economic calendar, with economic data limited to weekly jobless claim figures.
In the week ending 2nd April, initial jobless claims rose from a previous week 728k to 744k.
Economists had forecast a fall to 680k.
For the DAX: It was a bearish day for the auto sector on Thursday. Continental and Daimler slid by 1.62% and by 1.47% respectively, with Volkswagen falling by 0.97%. BMW ended the day with a more modest 0.79% loss.
It was also a bearish day for the banks. Deutsche Bank and Commerzbank fell by 1.05% and by 1.88% respectively.
From the CAC, it was a mixed day for the banks. BNP Paribas and Soc Gen ended the day down by 0.55% and by 1.83% respectively. Credit Agricole found support, however, gaining 0.21%.
It was a particularly bearish day for the French auto sector, however. Stellantis NV fell by 2.30%, with Renault sliding by 3.47%.
Air France-KLM gave up some of Wednesday’s gains with a 3.17% loss, while Airbus SE eked out a 0.26% gain.
It was a 2nd consecutive day in the red for the VIX on Thursday.
Following on from a 5.3% slide on Wednesday, the VIX fell by 1.22% to end the day at 16.95.
The NASDAQ rose by 1.03%, with the Dow and the S&P500 gaining 0.17% and 0.42% respectively.
It’s a busier day ahead on the European economic calendar. German industrial production and trade figures for February are due out later today.
The markets will be looking for positive numbers and a pick up in overseas exports of goods to be aligned with the survey-based PMI numbers.
From the U.S, wholesale inflation figures for March will also draw attention late in the European session.
In the futures markets, at the time of writing, the Dow Mini was up by 59 points.
For a look at all of today’s economic events, check out our economic calendar.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.