A lack of stats from the Eurozone will leave geopolitics front and center. Consumer confidence numbers and FED Chatter will also need to be monitored.
The European majors saw red at the start of the week. Leading the way down was the DAX, which slid by 0.53%. For the CAC40 and EuroStoxx600, the losses were more modest, with the pair ending the day down by 0.12% and by 0.25% respectively.
Rising tensions in the Middle East continued to pin back the European majors. Chatter from the Oval Office and the threat of fresh sanctions added to the market angst.
Economic data out of the Eurozone was on the heavier side on Monday.
Germany’s Business Climate Index and sub-indexes provided direction in the early part of the European session.
According to the June IFO Report,
While Germany’s Business Climate Index was in line with forecast, particularly weak sentiment added to the negative sentiment on the day.
From the DAX, Daimler tumbled by 3.18% off the back of a profit warning to drag the auto sector into the red. Continental fell by 1.8%, with BMW and Volkswagen ended the day down by 1.2% and by 0.05% respectively.
Bank stocks were also in the red on the day. Deutsche Bank slid by 1.25%, while Commerzbank fell by 0.62%.
From the CAC, BNP Paribas slid by 0.71%, with Credit Agricole ending the day down by 0.34%. From the auto sector, Renault joined the German autos in the red with a 1% fall on the day.
There are no material stats due out of the Eurozone through the day.
The lack of stats will place focus on U.S consumer confidence figures due out later in the day.
Outside of the stats, we can expect the markets to continue to focus on chatter from Iran and the Oval Office. The rise in tensions could complicate trade talks between the U.S and China.
Exports to India and China account for the lion’s share of Iran’s oil exports. Trump could use Iran as a pawn to nudge trade talks with China along. The last thing that the U.S needs is a China – Iran allegiance to muddy the waters in the Gulf…
At the time of writing, the DAX was up by 18 points. The Dow Mini was up by 43 points.
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.