European Equities: It’s a Quiet Day for the Markets…

The Majors

It was yet another bullish day for the European majors on Thursday. The DAX30 rallied by 1.04%, with the CAC40 and the EuroStoxx600 rising by 0.77% and by 0.97% respectively.

Major stats from the Eurozone were limited to finalized 3^rd quarter GDP numbers for Spain. The numbers had a muted impact, however, with the European boerses taking their cues from U.S stats and the U.S markets.

Positive news updates from vaccine manufacturers also delivered support. AstraZeneca and Novavax reportedly stated that their vaccines protected against Omicron.

The Stats

In the 3^rd quarter, the Spanish economy expanded by 2.6% quarter-on-quarter, which was up from a prelim 2.0%. The economy had expanded by 1.2% in the 2^nd quarter. Year-on-year, the Spanish economy expanded by 3.4% versus a prelim 2.7%. The economy had expanded by 17.7% in the previous quarter.

From the U.S

Jobless claims, personal spending, core durable goods, and inflation were the key stats of the day.

In the week ending 17^th December, initial jobless claims held steady at 205k, which was in line with forecasts.

Personal spending increased by 0.6% in November, following a 1.4% jump in October.

Core durable goods also impressed, rising by 0.8% after a 0.5% rise in October.

Inflation figures continued to reinforce the FED’s hawkish outlook on interest rates, however. In November, the Core PCE Price Index increased by 4.7% year-on-year. The Index had risen by 4.2% in October.

The Market Movers

For the DAX: It was a bullish day for the auto sector on Thursday. Continental led the way, rallying by 2.47%, with BMW ending the day up by 1.98%. Daimler and Volkswagen saw more modest gains of 0.57% and 0.87% respectively.

It was also a bullish day for the banks. Deutsche Bank and Commerzbank rose by 1.78% and by 0.77% respectively.

From the CAC, it was a bullish day for the banks. Credit Agricole led the way, rising by 1.54%, with BNP Paribas and Soc Gen ending the day up by 1.10% and by 1.32% respectively.

The French auto sector also found support. Stellantis NV and Renault rose by 0.74% and by 2.13% respectively.

Air France-KLM bucked the trend, falling by 0.08%, while Airbus SE rose by 0.68%.

On the VIX Index

It was a 3^rd consecutive day in the red for the  VIX on Thursday.

Following an 11.33% slide on Wednesday, the VIX fell by 3.60% to end the day at 17.96.

The NASDAQ rose by 0.85%, with the Dow and the S&P500 gaining 0.55% and 0.62% respectively.

 

The Day Ahead

It’s a particularly quiet day ahead on the Eurozone’s economic calendar. There are no material stats due out of the Eurozone to provide direction on the day.

With the German, Italian, and Spanish markets closed and the French markets on an early close, volumes will be on the lighter side. Following positive news updates from manufacturers on Thursday, the CAC40 will remain sensitive to any further updates on Omicron and vaccine efficacies.

The U.S markets are also closed today.