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European Equities: Inflation and U.S Jobless Claims in Focus
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It's another quiet day ahead for the European markets. Spanish inflation figures will be in focus ahead of weekly jobless claims figures from the U.S.
Economic Calendar
Thursday, 30th December
Spanish HICP (YoY) (Dec) Prelim
Spanish CPI (YoY) (Dec) Prelim
The Majors
It was a bearish day for the European majors on Wednesday, with a 4-day winning streak coming to an end for the EuroStoxx600 and the DAX30.
The DAX30 fell by 0.70%, with the CAC40 and the EuroStoxx600 ending the day down by 0.27% and by 0.11% respectively.
There were no major stats from the Eurozone to provide direction. From the U.S, economic data had a muted impact as the markets digested the latest COVID-19 numbers from Europe.
According to the WHO, the UK and France each reported more than 600,000 new cases in the last 7-days. Italy and Spain each recorded more than 300,000 new cases.
The Stats
There were no major stats to provide the majors with direction.
From the U.S
Goods trade data, inventories, and pending home sales figures were in focus.
In November, the U.S goods trade deficit widened from $83.2bn to $97.78bn. Inventories were on the rise in November. Retail inventories ex Auto increased by 1.3% following a 0.7% rise in October.
Pending home sales fell by 2.2%, however, partially reversing a 7.5% jump in October.
The Market Movers
For the DAX: It was a bearish day for the auto sector on Wednesday. Daimler slid by 1.97%, with Continental and Volkswagen seeing losses of 1.12% and 1.19% respectively. BMW ended the day down by 0.83%.
It was also a bearish day for the banks. Deutsche Bank and Commerzbank fell by 1.44% and by 1.68% respectively.
From the CAC, it was a mixed day for the banks. BNP Paribas fell by 0.18%, while Credit Agricole and Soc Gen ended the day up by 0.14% and by 0.43% respectively.
The French auto sector saw red, however. Stellantis NV and Renault ended the day with losses of 0.90% and 0.73% respectively.
Air France-KLM also saw red, falling by 1.24%, with Airbus SE ending the day down by 1.15%.
On the VIX Index
It was a 6th consecutive day in the red for the VIX on Wednesday.
Following a 0.79% decline on Tuesday, the VIX fell by 3.36% to end the day at 16.95.
The NASDAQ slipped by 0.10%, while the Dow and the S&P500 rose by 0.25% and by 0.14% respectively.
The Day Ahead
It’s a quiet day ahead on the Eurozone’s economic calendar. Prelim December inflation figures for Spain are due out early in the European session. With little else for the markets to consider, expect the numbers to draw interest.
From the U.S, weekly jobless claims will be the key stat of the day, however. The markets will be looking for any immediate impact of the Omicron strain on U.S labor market conditions.
Away from the economic calendar, COVID-19 news will need continued monitoring, however.
The Futures
In the futures markets, at the time of writing, the Dow Mini was down by 9 points, while the DAX was up by 5 points.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Bob Masonauthor
With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.
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