European Equities: Prelim Private Sector PMIs for October in Focus
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 relatively bearish day for the European majors on Thursday.
The EuroStoxx600 slipped by 0.08%, with the CAC40 and the DAX30 ending the day down by 0.29% and by 0.32% respectively.
Economic data from the Eurozone and the U.S failed to shift the mood, with market concerns over inflation and possible shift in central bank policy pegging the majors back.
Adding to the downside on the day were fresh updates on Evergrande and market reaction to more gloomy corporate outlooks.
Late in the session, consumer confidence figures for the Eurozone drew interest.
According to the EU Commission, the Eurozone’s consumer confidence index fell from -4.0 to -4.8 in October.
From the U.S
Philly FED Manufacturing PMI and jobless claims were also in focus late in the day.
In October, the Philly FED Manufacturing PMI fell from 30.7 to 23.8 versus a forecasted 25.0.
Looking at the components,
- The employment sub-index rose from 26.3 to 30.7, with new orders up from 15.9 to 30.8.
- Price pressures picked up further, however, rising from 67.3 to 70.3.
Of greater interest were jobless claims. Initial jobless claims fell from 296k to 290k in the week ending 15th October. Economists had forecast a rise to 300k.
The Market Movers
For the DAX: It was a mixed day for the auto sector on Thursday. Volkswagen rallied by 2.52% to lead the way, with Continental rising by 0.21%. BMW and Daimler ended the day down by 0.37% and by 0.15%, however.
It was a bullish day for the banks. Deutsche Bank rose by 0.52%, with Commerzbank gaining 1.32%.
From the CAC, it was a bearish day for the banks. Credit Agricole fell by 0.56%, with BNP Paribas and Soc Gen ending the day with losses of 1.01% and 0.94% respectively.
It was also a bearish day for the French auto sector. Stellantis NV slipped by 0.06%, with Renault falling by 1.28%.
Air France-KLM found much-needed support, rising by 0.98%, while Airbus SE fell by 0.92%.
On the VIX Index
It was a 3rd consecutive day in the red for the VIX on Thursday, marking a 7th day in the red from 8-sessions.
Following a 1.34% fall on Wednesday, the VIX fell by 3.10% to end the day at 15.01.
The Dow slipped by 0.02%, while the NASDAQ and the S&P500 gained 0.62% and 0.30% respectively.
The Day Ahead
It’s a busy day ahead on the Eurozone’s economic calendar. Prelim private sector PMIs for France, Germany, and the Eurozone will be in focus.
While the headline PMIs will be key, expect plenty of interest in cost pressures and supply chain issues faced by manufacturers in particular.
From the U.S, prelim private sector PMI figures for October will also influence. Expect the services PMI to have the greatest influence on the majors.
Away from the economic calendar, however, corporate earnings, central bank chatter, and crude oil prices will need continued monitoring.
In the futures markets, at the time of writing, the Dow Mini was down by 30 points.
For a look at all of today’s economic events, check out our economic calendar.