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European Equities: Private Sector PMIs from China and Capitol Hill in Focus
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It's a busier day ahead on the economic data front. Ahead of key stats from the Eurozone, China manufacturing sector PMI numbers will set the tone, however.
In this article:
Economic Calendar
Thursday, 30th September
French Consumer Spending (MoM) (Aug)
German Unemployment Change (Sep)
German Unemployment Rate (Sep)
Italian CPI (MoM) (Sep) Prelim
Eurozone Unemployment Rate (Aug)
German CPI (MoM) (Sep) Prelim
Friday, 1st October
German Retail Sales (MoM) (Aug)
Spanish Manufacturing PMI (Sep)
Italian Manufacturing PMI (Sep)
French Manufacturing PMI (Sep) Final
German Manufacturing PMI (Sep) Final
Eurozone Manufacturing PMI (Sep) Final
Eurozone CPI (YoY) (Sep) Prelim
The Majors
It was a relatively bullish day for the European majors on Wednesday.
The EuroStoxx600 rose by 0.59%, with the CAC40 and the DAX30 ending the day up by 0.83% and by 0.77% respectively.
Economic data from the Eurozone and the U.S were on the lighter side, leaving dip buyers to deliver support.
The gains on the day were modest, however, following Tuesday’s sell-off as concerns over growth and inflation lingered.
The Stats
It was a relatively quiet day on the economic calendar, with Spanish inflation in focus.
According to prelim figures, Spain’s annual rate of inflation accelerated from 3.3% to 4.0%. Economists had forecast an annual rate of inflation of 3.5%.
From the U.S
Economic data was limited to housing sector data that had a muted impact on the majors.
In August, pending home sales surged by 8.1%, month-on-month, versus a forecasted 1.4% increase. Sales had fallen by 2.0% in July.
The Market Movers
For the DAX: It was a bullish day for the auto sector on Wednesday. Volkswagen rallied by 3.41% to lead the way, with BMW and Daimler rising by 2.01% and by 1.56% respectively. Continental ended the day up by a more modest 0.69%.
It was also a bullish day for the banks. Deutsche Bank and Commerzbank saw gains of 0.69% and 2.54% respectively.
From the CAC, it was a bullish day for the banks. BNP Paribas and Credit Agricole rose by 0.77% and by 0.05% respectively. Soc Gen led the way, however, rallying by 2.19%.
It was also a bullish day for the French auto sector. Stellantis NV and Renault ended the day up by 1.08% and by 1.44% respectively.
Air France-KLM bucked the broader trend sliding by 3.46%, while Airbus SE bounced back with a 3.48% gain.
On the VIX Index
It was a back into the red for the VIX on Wednesday, ending a 2-day winning streak.
Following a 23.93% jump on Tuesday, the VIX fell by 2.97% to end the day at 22.56.
The NASDAQ fell by 0.24%, while the Dow and S&P500 ended the day up by 0.26% and by 0.16% respectively.
The Day Ahead
It’s a particularly busy day ahead on the Eurozone’s economic calendar.
French consumer spending and German unemployment figures will be in focus going into the European session.
With concerns over growth lingering, we can expect some sensitivity to the numbers.
Other stats on the day include inflation figures for Italy and Germany and Eurozone unemployment numbers. Expect inflation data for September to draw interest following the pickup in Spanish inflation.
From the U.S, initial jobless claims, final 2nd quarter GDP and Chicago PMI figures will also provide direction.
Ahead of the European open, private sector PMI numbers from China will set the tone, however.
We saw plenty of market sensitivity to weaker industrial profit figures earlier in the week. The market’s preferred Caixin Manufacturing PMI will be the key stat from China. Economists have forecast for the Caixin Manufacturing PMI to rise modestly from 49.2 to 49.5.
From Capitol Hill, news updates on the debt-ceiling will also be an area of focus on the day.
The Futures
In the futures markets, at the time of writing, the Dow Mini was up by 111 points.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Bob Masonauthor
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.
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