It's a relatively busy day ahead. As the markets respond to the FOMC meeting minutes, economic data from the Germany and the U.S, and the ECB minutes will also be key.
It was a bullish day for the European majors on Wednesday.
The DAX30 rallied by 1.17%, with the CAC40 and the EuroStoxx600 seeing gains of 0.31% and by 0.78% respectively.
Disappointing economic data from Germany and apprehension ahead of the FOMC meeting minutes failed to spook bargain hunters following Tuesday’s pullback.
Optimism and market expectation of continued central bank support remains key for the European markets near-term.
It was relatively quiet start to the European session. German industrial production figures were in focus.
In May, industrial production fell by 0.3%, following a 0.3% decline in April. Economists had forecast a 0.7% rise.
According to Destatis,
It was also a quieter day on the U.S economic calendar. On the economic data front, JOLT’s job openings had little influence. In May, job openings increased from 9.193m to 9.209m, coming in ahead of a forcasted 9.100m rise.
After the European close, the FOMC meeting minutes were key, however, and may provide some support going into the European open. In response to the FOMC meeting minutes, the U.S majors wrapped up the day in positive territory.
For the DAX: It was a mixed day for the auto sector on Wednesday. BMW and Volkswagen rose by 0.05% and by 0.68% respectively. Continental and Daimler ended the day down by 0.25% and by 0.83% respectively.
It was a bearish day for the banks, however. Deutsche Bank and Commerzbank saw losses of 1.56% and 2.37% respectively.
From the CAC, it was a bearish day for the banks. Credit Agricole and Soc Gen slipped by 0.14% and by 0.84% respectively, with BNP Paribas falling by 1.43%.
It was also a bearish day for the French auto sector. Stellantis NV and Renault ended the day with losses of 0.43% and 1.33% respectively.
Air France-KLM and Airbus SE fell by 1.54% and by 0.96% respectively.
It was back into the red for the VIX on Wednesday, marking a 4th day in the red from 5-sessions.
Partially reversing a 9.09% gain from Tuesday, the VIX fell by 1.46% to end the day at 16.20.
The NASDAQ eked out a 0.1% gain, with the Dow and the S&P500 ending the day up 0.30% and by 0.34% respectively.
It’s a relatively busy day ahead on the economic calendar.
German trade data will be in focus ahead of the European open. Later in the day, the ECB’s monetary policy meeting minutes will also draw interest.
From the U.S, the weekly jobless claims will provide direction, though the release coincides with the ECB minutes.
Away from the economic calendar, COVID-19 news updates will need continued monitoring.
In the futures markets, at the time of writing, the Dow Mini was up by 16 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.