European Equities: Stats, the G20 and Iran Are in Focus

Economic data, the G20 and Iran are in focus through the day. Some caution is to be expected as the G20 rapidly approaches…
Bob Mason
List of stock market indices

Economic Calendar:

Wednesday, 26th June

  • GfK German Consumer Climate (Jul)
  • France Jobseekers Total

Thursday, 27th June

  • Spanish HICP (YoY) (Jun)
  • Eurozone Business Confidence
  • German CPI m/m  (Jun) Prelim

Friday, 28th June

  • French Consumer Spending m/m (May)
  • French CPI m/m (June) Prelim
  • French HICP m/m (June) Prelim
  • Spanish GDP q/q (Q1)
  • Italian CPI m/m (Jun) Prelim
  • Eurozone Core CPI y/y (Jun) Prelim
  • Eurozone CPI y/y (Jun) Prelim

The Majors

The European majors saw red again on Tuesday. Leading the way down was the DAX for a second consecutive, falling by 0.38%.

For the CAC40 and EuroStoxx600, the losses were more modest, with the pair ending the day down by 0.13% and by 0.10% respectively.

Pressure on the majors continued to come from rising tensions in the Middle East as Trump rolls out fresh sanctions on Iran. Market jitters ahead of this week’s G20 Summit also weighed on risk appetite on the day.

There’s a lot riding on progress being made at the G20, where Trump and Xi are scheduled to meet…

The Stats

There were no material stats out of the Eurozone on Tuesday to provide direction.

Out of the U.S economic data included new home sales and consumer confidence figures.

The stats were skewed to the negative, with new home sales sliding by 7.8% in May and the Consumer Confidence Index sliding from 131.3 to 121.5. The Index was at its lowest level since September 2017.

According to the latest CB Consumer Confidence Survey,

  • The Present Situation Index, fell from 170.7 to 162.6, with the Expectations Index falling from 105.0 to 94.1.

While the market focus was on China and Iran, the weak numbers certainly didn’t help on the day.

The Market Movers

From the DAX, the auto sector continued to stumble. Continental led the way down, falling by 1.66%. Daimler fell by 0.84% off the back of Monday’s 3.18% slide. BMW and Volkswagen ended the day down by 0.82% and by 0.87% respectively.

Bank stocks were mixed on the day, however. While Deutsche Bank rose by 0.11%, Commerzbank slid by 1.19% on the day.

From the CAC, bank stocks fell for a 2nd consecutive day. BNP Paribas fell by 0.74%, with Credit Agricole ending the day down by 1.11%. From the auto sector, Renault joined the German autos in the red with a 2.03% slide. Ongoing friction between Nissan and Renault added to the downside on the day.

The Day Ahead

It’s a relatively quiet day ahead. Germany’s GfK Consumer Climate figures will be in focus. Following disappointing business climate numbers, the consumer sector will need to provide support.

Forecasts are negative for the majors.

From elsewhere, U.S Durable Goods Orders will be watched closely.

Outside of the stats, expect market jitters ahead of this week’s G20 Summit to continue to linger, with chatter from Iran to also influence.

At the time of writing, the DAX was down by 35.5 points. The Dow Mini was up by 2 points.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.