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European Equities: Inflation and Consumer Confidence in Focus
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After a quiet start to the week, German inflation and Eurozone and U.S consumer confidence figures will be in focus later today. COVID-19 will also remain a factor, however.
In this article:
German CPI (MoM) (Jun) Prelim
Wednesday, 30th June
French Consumer Spending (MoM) (May)
French CPI y/y (Jun) Prelim
German Unemployment Change (Jun)
German Unemployment Rate (Jun)
Italian CPI (MoM) (Jun) Prelim
Eurozone CPI (YoY) (Jun) Prelim
Eurozone Core CPI (YoY) (Jun) Prelim
Eurozone CPI (MoM) (Jun) Prelim
Thursday, 1st July
Spanish Manufacturing PMI (Jun)
Italian Manufacturing PMI (Jun)
French Manufacturing PMI (Jun) Final
German Manufacturing PMI (Jun) Final
Eurozone Manufacturing PMI (Jun) Final
Eurozone Unemployment Rate (May)
Friday, 2nd July
German Retail Sales (MoM) (May)
The Majors
It was a bearish start to the week for the European majors on Monday.
The CAC40 fell by 0.98%, with the DAX30 and the EuroStoxx600 seeing losses of 0.34% and 0.58% respectively.
There were no major stats for the markets to consider, leaving market reaction to the latest spike in new COVID-19 cases to peg back the majors.
An introduction of a ban on UK travelers and Germany requiring quarantine for travelers returning from Portugal hit the news wires, weighing on airline stocks.
Adding to the market angst at the start of the week was news of the Delta strain of the virus spreading across Asia.
The Stats
There were no major stats from the Eurozone to provide the majors with direction.
From the U.S
It was also a quiet day on the economic calendar, with no major stats to influence later in the day.
The Market Movers
For the DAX: It was a bearish day for the auto sector on Monday. Daimler slid by 2.07% to lead the way down, with BMW and Continental falling by 1.22% and by 1.42% respectively. Volkswagen saw a more modest 0.74% loss on the day.
It was also a bearish day for the banks. Deutsche Bank and Commerzbank ended the day with losses of 1.24% and 2.53% respectively.
From the CAC, it was a bearish day for the banks. BNP Paribas and Soc Gen slid by 2.31% and by 2.46% respectively, with Credit Agricole falling by 1.41%.
The French auto sector also saw red, with Stellantis NV and Renault ended the day down by 1.29% and by 1.60% respectively.
Air France-KLM tumbled by 4.08% in reaction to the travel bans, with Airbus SE falling by 2.92%.
On the VIX Index
A run of 5 consecutive days in the red came to an end for the VIX on Monday.
Partially reversing a 2.19% fall from Friday, the VIX rose by 0.90% to end the day at 15.76.
The Dow fell by 0.44%, while the NASDAQ and the S&P500 ended the day up by 0.98% and by 0.23% respectively.
The Day Ahead
It’s a relatively busy day ahead on the economic calendar. From the Eurozone, German inflation and Eurozone consumer sentiment figures together with U.S consumer confidence figures will be in focus.
With central banks looking towards consumer spending to deliver a speedier economic recovery in the 2nd half of the year, today’s stats will influence.
On the inflation front, a further pickup in inflationary pressure would test support for the majors, however.
Away from the economic calendar, COVID-19 news and central bank chatter will also need monitoring.
The Futures
In the futures markets, at the time of writing, the Dow Mini was down by 4 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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