European Equities: Inflation Figures and Corporate Earnings in Focus
It’s a busier day ahead, with economic data from China, the Eurozone, and the U.S in focus. Corporate earnings will also draw plenty of attention, with U.S banks on the docket.
Economic Calendar
Tuesday, 13th July
German Inflation Rate YoY Final JUN
German Inflation Rate MoM Final JUN
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French Inflation Rate YoY Final JUN
French Inflation Rate MoM Final JUN
Wednesday, 14th July
Spain Harmonized Inflation Rate YoY Final JUN
Spain Inflation Rate YoY Final JUN
Eurozone Industrial Production MoM MAY
Thursday, 15th July
Italy Inflation Rate MoM Final JUN
Friday, 16th July
Eurozone Balance of Trade MAY
Eurozone Inflation Final June
The Majors
It was a bullish start to the week for the European majors on Monday.
The CAC40 rose by 0.46%, with the DAX30 and the EuroStoxx600 ending the day up by 0.65% and by 0.69% respectively.
There were no stats to provide the majors with direction on the day, leaving corporate earnings in focus.
While sentiment towards the earnings season provided support, concerns over the spread of the Delta variant pegged the majors back.
Vaccine shortages and low vaccination rates across a large number of countries pressured the majors. There were also reports of China’s Sinovac vaccine having lower efficacy against the Delta variant, which will remain a test.
The Stats
It was a particularly quiet day, with no material stats from the Eurozone.
From the U.S
It was also a quiet day on the U.S economic calendar. There were no stats from the U.S to provide the majors with direction late in the European session.
The Market Movers
For the DAX: It was a mixed day for the auto sector on Monday. Volkswagen rallied by 2.72%, with BMW and Daimler ending the day up by 1.32% and by 0.62% respectively. Continental bucked the trend, however, falling by 0.27%.
It was also a mixed day for the banks. Deutsche Bank rose by 0.38%, while Commerzbank slipped by 0.18%.
From the CAC, it was a mixed day for the banks. BNP Paribas and Soc Gen rose by 0.22% and by 0.10% respectively, while Credit Agricole fell by 0.22%.
It was also a mixed day for the French auto sector. Renault ended the day down by 1.45%, while Stellantis NV closed out the day unchanged.
Air France-KLM and Airbus SE saw losses of 1.92% and 0.50% on the day. The likely impact of the Delta variant on travel weighed on travel stocks at the start of the week.
On the VIX Index
It was a 2nd consecutive day in the red for the VIX on Monday.
Following a 14.84% slide on Friday, the VIX fell by 0.06% to end the day at 16.17.
The NASDAQ rose by 0.21%, with the Dow and the S&P500 ending the day up 0.36% and by 0.35% respectively.
The Day Ahead
It’s a relatively quiet day ahead on the economic calendar. Finalized June inflation figures for France and Germany will be in focus in the early part of the European session.
Following the ECB’s policy revision, however, the finalized numbers are unlikely to have a material impact on the European majors, barring a marked upward revision.
From the U.S, inflation figures are also due out and will likely have a greater impact on the majors.
Earlier in the day, trade data from China will set the tone going into the European open.
Away from the economic calendar, corporate earnings season kicks off today. U.S banks Goldman Sachs, JPMorgan, and Morgan Stanley are among big names set to release results later today…
The Futures
In the futures markets, at the time of writing, the Dow Mini was down by 3 points.
For a look at all of today’s economic events, check out our economic calendar.
