European Equities: Inflation and Corporate Earnings in Focus
Wednesday, 20th October
German PPI (MoM) (Sep)
Eurozone Core CPI (YoY) (Sep)
Eurozone CPI (MoM) (Sep)
Eurozone CPI (YoY) (Sep)
Thursday, 21st October
GfK German Consumer Climate (Nov)
Eurozone Consumer Confidence (Oct) Flash
Friday, 22nd October
French Manufacturing PMI (Oct) Prelim
French Services PMI (Oct) Prelim
German Manufacturing PMI (Oct) Prelim
German Services PMI (Oct) Prelim
Eurozone Manufacturing PMI (Oct) Prelim
Eurozone Markit Composite PMI (Oct) Prelim
Eurozone Services PMI (Oct) Prelim
It was a mixed day for the European majors on Tuesday.
The CAC40 slipped by 0.05%, while the DAX30 and the EuroStoxx600 ended the day up by 0.27% and by 0.33% respectively.
Following the disappointing stats from China at the start of the week, there were no major stats for the markets to consider.
The lack of stats left the majors in the hands of corporate earnings, crude oil prices, and central bank chatter on the day.
Throughout the day, the majors did find support from the U.S markets, however, which closed out in positive territory.
It was another particularly quiet day, with no major stats from the Eurozone to provide the majors with direction.
From the U.S
Housing sector stats for September were on the docket that had a muted impact on the majors later in the session.
The Market Movers
For the DAX: It was a mixed day for the auto sector on Tuesday. Daimler rose by 0.63% to buck the trend. Continental and BMW fell by 0.99% and 0.45% respectively, however, with Volkswagen ending the day down by 0.14%.
It was a bullish day for the banks. Deutsche Bank and Commerzbank rose by 0.35% and by 2.61% respectively.
From the CAC, it was a relatively bullish day for the banks. Credit Agricole rose by 0.20%, with BNP Paribas and Soc Gen ending the day with gains of 0.16% and 0.10% respectively.
It was a bearish day for the French auto sector, however. Stellantis NV and Renault saw losses of 0.92% and 1.06% respectively.
Air France-KLM slid by a further 3.32%, with Airbus SE falling by 0.86%.
On the VIX Index
It was back into the red for the VIX on Tuesday, marking a 5th day in the red from 6-sessions.
Following a 0.06% rise on Monday, the VIX fell by 3.74% to end the day at 15.70.
The Dow rose by 0.56%, with the NASDAQ and the S&P500 gaining 0.71% and 0.74% respectively.
The Day Ahead
It’s a busier day ahead on the Eurozone’s economic calendar. Wholesale inflation figures from Germany and finalized inflation figures for the Eurozone are due out early in the European session.
Expect any pickup in wholesale inflation and any upward revisions from prelim figures for the Eurozone to test support.
Away from the economic calendar, corporate earnings and crude oil prices will also continue to influence, however.
In the futures markets, at the time of writing, the Dow Mini was up by 15 points.
For a look at all of today’s economic events, check out our economic calendar.