European Equities: Service Sector PMIs and U.S NFP numbers in Focus

The EuroStoxx600 rose by 0.35%, with the CAC40 and the DAX40 ending the day up by 0.06% and by 0.10% respectively.

There were no major stats from the Eurozone to provide the majors with direction on the day.

Economic data from the U.S did provide support late in the session, however.

While the stats were market friendly, the focus remained on today’s nonfarm payrolls and ISM Non-Manufacturing numbers from the U.S.

The Stats

It was a particularly quiet day on the Eurozone economic calendar. There were no major stats to provide the majors with direction.

From the U.S

Key stats included weekly jobless claims and factory orders.

In the week ending 30^th August, initial jobless claims fell from 354k to 340k. Economists had forecast a decline to 345k.

Factory orders rose by 0.40% in July following a 1.50% increase in June. Economists had forecast a 0.3% increase.

Other stats included nonfarm productivity and unit labor costs for the 2^nd quarter, which had a muted impact on the majors.

The Market Movers

For the DAX: It was a mixed day for the auto sector on Thursday. Volkswagen and BMW saw gains of 0.77% and 0.01% respectively. Continental and Daimler ended the day down by 0.15% and by 0.75% respectively.

It was a bullish day for the banks, however. Deutsche Bank and Commerzbank rose by 0.24% and by 0.80% respectively.

From the CAC, it was a mixed day for the banks. BNP Paribas ended the day flat, with Soc Gen falling by 0.11%. Credit Agricole rose by 0.23%, however.

It was also a mixed day for the French auto sector. Stellantis NV rose by 1.19%, while Renault fell by 0.89%.

Air France-KLM rose by 0.35%, while Airbus SE ended the day down by 1.03%.

On the VIX Index

It was a back into the green for the VIX on Thursday.

Partially reversing a 2.25% fall from Wednesday, the VIX rose by 1.86% to end the day at 16.41.

The Dow rose by 0.37%, with the NASDAQ and the S&P500 ending the day up by 0.14% and by 0.28% respectively.

The Day Ahead

It’s a particularly busy day ahead on the Eurozone’s economic calendar.

Service sector PMIs for Italy and Spain and retail sales figures for the Eurozone are due out later today. Finalized service and composite PMIs for France, Germany, and the Eurozone are also due out.

Barring marked revisions to prelim figures, Italy and the Eurozone’s PMIs and Eurozone retail sales figures will be key.

From the U.S, nonfarm payroll and ISM Non-Manufacturing PMI numbers for August are due out. Expect a plenty of influence from the numbers. While the FED has talked of tapering, a continued surge in hiring and a marked pickup in service sector activity could shift the FED’s timelines vis-à-vis interest rates.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 4 points.

For a look at all of today’s economic events, check out our economic calendar.