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European Equities: German Inflation, U.S Consumer Confidence, and COVID-19 in Focus
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Economic data from Germany and the Eurozone will be in focus today. News updates on COVID-19 and rchegos liquidations will also need monitoring, however.
In this article:
Economic Calendar:
Tuesday, 30th March
Spanish HICP (YoY) (Mar) Prelim
German CPI (MoM) (Mar) Prelim
Wednesday, 31st March
French Consumer Spending (MoM) (Feb)
German Unemployment Change (Mar)
German Unemployment Rate (Mar)
Eurozone CPI (YoY) (Mar) Prelim
Thursday, 1st April
German Retail Sales (MoM) (Feb)
Spanish Manufacturing PMI (Mar)
Italian Manufacturing PMI (Mar)
French Manufacturing PMI (Mar) Final
German Manufacturing PMI (Mar) Final
Eurozone Manufacturing PMI (Mar) Final
The Majors
It was a relatively bullish start to the week for the European majors on Monday. The DAX30 and CAC40 rose by 0.47% and by 0.45% respectively, with the EuroStoxx600 gaining 0.15%.
There were no material stats from the Eurozone or the U.S to provide the majors with direction.
COVID-19 news updates continued to weigh on the majors with Germany talking of a possible need to reintroduce containment measures. The news followed Chancellor Merkel’s decision to U-turn on lockdown measures last week.
Through the early part of the day, the European markets also reacted to news of hedge fund Archegos defaulting on margin calls. Warnings of significant losses across the banking sector pegged the majors back.
The Stats
It was a particularly quiet day on the economic calendar on Monday. There were no material stats from the Eurozone to provide the European majors with direction.
From the U.S
It was also a particularly quiet day on the U.S economic calendar, with no major stats from the U.S to influence.
The Market Movers
For the DAX: It was a bullish day for the auto sector on Monday. BMW and Volkswagen rose by 1.90% and 1.71% respectively. Continental and Daimler saw relatively modest gains of 0.76% and 0.83% respectively.
It was a bearish day for the banks, however. Deutsche Bank slid by 2.52%, with Commerzbank falling by 1.42%.
From the CAC, it was a bearish day for the banks. BNP Paribas and Soc Gen slid by 1.94% and by 2.41% respectively, with Credit Agricole declining 0.69%.
It was a relatively bullish day for the French auto sector, however. Stellantis NV and Renault ended the day with modest gains of 0.10% and 0.16% respectively.
Air France-KLM rose by 0.36%, while Airbus SE slipped by 0.29% on the day.
On the VIX Index
It was back in the green for the VIX on Monday, following two consecutive days in the red.
Reversing a 4.80% fall from Friday, the VIX rose by 9.97% to end the day at 20.74.
The Dow rose by 0.30%, while the NASDAQ and the S&P500 fell by 0.60% and 0.09% respectively.
The Day Ahead
It’s a relatively quiet day ahead on the European economic calendar. Prelim inflation figures from Spain and Germany will be in focus.
Barring a marked pickup in inflationary pressures, however, the stats are unlikely to have a material influence on the majors.
From the U.S, consumer confidence figures due out late in the European session will provide direction, however.
Away from the economic calendar, COVID-19 and COVID-19 vaccine news will need monitoring. There’s also any further talk of financial losses over the Archegos Fund to consider.
The Futures
In the futures markets, at the time of writing, the Dow Mini was up by 42 points.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Bob Masonauthor
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.
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