It's a busy day ahead for the markets. Private sector PMIs for August will be in focus through the session. Expect any FOMC member chatter to also influence.
French Manufacturing PMI (Aug) Prelim
French Services PMI (Aug) Prelim
German Manufacturing PMI (Aug) Prelim
German Services PMI (Aug) Prelim
Eurozone Manufacturing PMI (Aug) Prelim
Eurozone Markit Composite PMI (Aug) Prelim
Eurozone Services PMI (Aug) Prelim
Eurozone Consumer Confidence (Aug)
German GDP (YoY) (Q2)
German GDP (QoQ) (Q2)
German Ifo Business Climate Index (Aug)
GfK German Consumer Climate (Sep)
It was relatively bullish day for the European majors on Friday, with the majors reversing losses from early in the session.
The DAX30 rose by 0.27%, with the CAC40 and the EuroStoxx600 seeing gains of 0.31% and 0.33% respectively.
A quiet economic calendar allowed the markets to hit pause on the pullback through the week.
Apprehension ahead of next week’s Jackson Hole Symposium and concerns over the Delta variant pegged the majors back, however.
In July, Germany’s producer price index for industrial products rose by 1.9% versus a forecasted 0.8% increase. The index had risen by 1.3% in June.
According to Destatis,
There were no major stats to provide the European majors with direction late in the day.
For the DAX: It was a mixed day for the auto sector on Friday. Daimler rose by 0.39% to buck the trend on the day. BMW and Continental fell by 0.30% and by 0.22% respectively, however, with Volkswagen ending the day down by 1.09%.
It was a bearish day for the banks. Deutsche Bank and Commerzbank ended the day with losses of 0.38% and 0.37% respectively.
From the CAC, it was a relatively bullish day for the banks. BNP Paribas rose by 0.37%, with Soc Gen and Credit Agricole ending the day up by 0.02% and by 0.17% respectively.
It was another day in the red for the French auto sector, however. Stellantis NV and Renault fell by 1.15% and by 1.13% respectively.
Air France-KLM declined by 1.26%, while Airbus SE rose by 0.40%.
It was back into the red for the VIX on Friday, ending a 4-day winning streak.
Reversing a 0.46% gain from Thursday, the VIX slid by 14.35% to end the day at 18.56.
The NASDAQ rose by 1.19%, with the Dow and the S&P500 seeing gains of 0.65% and by 0.81% respectively.
It’s a busy day ahead on the Eurozone’s economic calendar. Prelim August private sector PMIs for France, Germany, and the Eurozone will be in focus early in the European session.
Expect plenty of influence from the numbers as the markets look to assess whether the Delta variant has impacted activity.
With consumption key to a sustainable economic recovery, Eurozone consumer sentiment figures for August will also draw attention late in the day.
From the U.S, prelim private sector PMis will also be in focus, with the Services PMI the key driver.
FOMC member chatter ahead of Jackson Hole and COVID-19 will also remain the key areas of interest.
In the futures markets, at the time of writing, the Dow Mini was down by 12 points.
For a look at all of today’s economic events, check out our economic calendar.
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.