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.

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