European Equities: German Wholesale Inflation and ECB President Lagarde in Focus

The Majors

It was a bearish day for the European majors on Thursday, with the EuroStoxx600 seeing red for the 1^st time in 7-sessions.

The DAX30 slipped by 0.18%, with the CAC40 and the EuroStoxx600 seeing losses of 0.21% and 0.48% respectively.

There were no major stats from the Eurozone to provide the majors with direction. With no major stats to consider, the inflation narrative remained a drag on the majors late in the week.

Better than expected economic data from the U.S failed to change the mood late in the session.

In spite of the inflation gloom, earnings provided support to the DAX30, with Thyssenkrupp delivering better than expected results.

The Stats

There are no material stats from the Eurozone to provide the majors with direction.

From the U.S

Jobless claims and Philly FED Manufacturing PMI figures were in focus.

In November, the Philly FED Manufacturing PMI rose from 23.8 to 39.0. Economists had forecast a modest increase to 24.0.

According to the November survey,

• Nearly 42% of firms reported increases in current activity, while just 3% reported decreases.
• The index for new orders increased 18 points to 47.4.
• Price pressures remained, however with the prices paid diffusion index up 10 points to 80.0. This was the highest reading since June’s 42-year high 80.7.
• In spite of continued cost pressures, firms remained optimistic. The diffusion index for future general activity increased by 4 points to 28.5.

In the week ending 12^th November, initial jobless claims saw a modest fall from 269k to 268k. Economists had forecast a decline to 260k.

The Market Movers

For the DAX: It was another mixed day for the auto sector on Thursday. Continental slid by 3.23%, with Volkswagen ending the day down by 0.92%. Daimler found support, however, rallying by 1.55%, with BMW gaining 0.48%.

It was a bearish day for the banks. Deutsche Bank and Commerzbank ended the day down by 0.70% and by 1.08% respectively.

From the CAC, it was a mixed day for the banks. Soc Gen rose by 0.39%, while BNP Paribas and Credit Agricole ended the day down by 0.53% and by 0.67% respectively.

It was a bearish day for the French auto sector, however. Stellantis NV and Renault ended the day with losses of 0.48% and 0.04% respectively.

Air France-KLM and Airbus SE also saw relatively modest declines of 0.73% and 0.10% respectively

On the VIX Index

It was a 2^nd consecutive day in the green for the  VIX on Thursday.

Following a 4.52% gain on Wednesday, the VIX rose by 2.81% to end the day at 17.59.

The Down slipped by 0.17%, while the NASDAQ and the S&P500 saw gains of 0.45% and 0.34% respectively.

The Day Ahead

It’s a relatively quiet day ahead on the Eurozone’s economic calendar. German wholesale inflation figures for October will draw interest.

With plenty of market sensitivity to inflation, expect the numbers to influence.

On the monetary policy front, ECB President Lagarde is also scheduled to speak later in the day.

From the U.S, economic data is limited to housing sector data that should have a muted impact on the majors.

Any FOMC member chatter will influence, however. FOMC member Waller is scheduled to speak ahead of the close.

After the close, FOMC member Clarida and ECB President Lagarde are also due to deliver speeches.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 22 points.

For a look at all of today’s economic events, check out our economic calendar.