The Futures markets are pointing to a bullish start to the European session. Corporate earnings, FOMC member chatter and Trump could impact...
It was back in the red for the majors. The DAX led the way down on Thursday, falling by 0.92% to pull the index into the red for the current week.
The CAC and EuroStoxx600 also saw red, with the pair falling by 0.38% and by 0.22% respectively.
Negative sentiment towards trade and corporate earnings results ultimately did the damage. The European markets had closed ahead of some dovish chatter from FOMC member Williams.
It was a quieter day on the economic calendar on Thursday, with no material stats out of the Eurozone on Friday.
The lack of stats left the European majors exposed to economic data and corporate earnings out of the U.S on the day.
On the data front, the Philly FED Manufacturing Index jumped from 0.30 to 21.80, with the employment sub-index rising from 15.40 to 30.00.
According to the latest Philly FED survey,
The numbers were not enough for the majors, however, which failed to move out of the red on the day.
From the DAX, the usual suspects were back in the red. From the auto sector, Daimler was the worst-performing, sliding by 1.72%. Continental (-0.48%) and Volkswagen (-0.33%) were also amongst the bottom 10 stocks on the day. BMW saw a more modest 0.18% loss on the day. The sector struggled as the markets responded to reports of U.S – China trade talks being stuck on Huawei.
From the banking sector, Commerzbank tumbled by 2.24%, while Deutsche Bank ended the day flat.
From the CAC, BNP Paribas slipped by 0.41%, with Soc Gen ending the day down by 0.48%. Credit Agricole was amongst the worst performers on the day, falling by 1.6%. Renault also struggled, falling by 1.53% on Thursday.
Economic data due out of the Eurozone is limited to June wholesale inflation numbers out of Germany.
Barring an unexpected jump in inflation, the numbers are unlikely to have a material impact on the European majors.
With economic data out of the Eurozone on the lighter side, U.S consumer sentiment and expectation figures will likely influence later in the day.
There are no major earnings releases out of the U.S on the day to influence, which will leave the markets to consider the results from earlier in the week.
On the geopolitical front, any chatter from the U.S administration will also need to be considered on the day. Trade war chatter and Trump’s Friday Twitter sessions will also be a factor on the day.
Following mixed signaling from the FED on policy yesterday, we can also expect the majors to be sensitive to any chatter on monetary policy.
At the time of writing, the DAX was up by 74.5 points, while the Dow Mini was up by 124 points.
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.