European Equities: U.S Economic Data and the U.S Markets to Provide Direction

The Majors

It was another bullish day for the European majors on Wednesday. The CAC40 rallied by 1.24%, with the DAX30 and the EuroStoxx600 rising by 0.95% and by 0.92% respectively.

Mid-week, investors continued to brush aside Omicron news updates, with tech stocks on the move. On the economic data front, upward revisions to U.S GDP numbers and a pickup in U.S consumer confidence were market positives late in the session.

Omicron news continued to be market negative, however. News of governments across the world imposing measures to curb the spread of the virus limited the upside on the day.

The Stats

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

From the U.S

Finalized GDP numbers were in focus. In the 3^rd quarter, the U.S economy expanded by 2.3%, which was up from a 2^nd estimate 2.1%. The economy had expanded by 6.7% in the 2^nd quarter.

The CB Consumer Confidence Index rose unexpectedly from 111.9 to 115.8. Economists had forecast a fall to 110.8 in December.

The Market Movers

For the DAX: It was a bullish day for the auto sector on Wednesday. Daimler and Continental led the way, with gains of 1.56% and 1.36% respectively. Volkswagen and BMW ended the day up by 0.75% and by 0.40% respectively.

It was also a bullish day for the banks. Deutsche Bank and Commerzbank rose by 0.26% and by 0.60% respectively.

From the CAC, it was also a bullish day for the banks. Soc Gen led the way, rising by 1.10%, with BNP Paribas and Credit Agricole ending the day up by 0.83% and by 0.64% respectively.

The French auto sector also found support. Stellantis NV and Renault rose by 0.88% and by 0.21% respectively.

Air France-KLM ended the day up by 0.63%, with Airbus SE rallying by 4.01%.

On the VIX Index

It was a 2^nd consecutive day in the red for the  VIX on Wednesday.

Following an 8.13% loss on Tuesday, the VIX slid by 11.33% to end the day at 18.63.

The Dow rose by 0.74%, with the NASDAQ and the S&P500 gaining 1.18% and 1.02% respectively.

The Day Ahead

It’s a relatively quiet day ahead on the Eurozone’s economic calendar. Finalized 3^rd quarter GDP numbers for Spain will be in focus early in the session. We don’t expect the numbers to have any influence, however.

From the U.S, core durable goods orders, personal spending, inflation, and jobless claims will provide direction later in the day.

Away from the economic calendar, COVID-19 news updates also continue to draw interest and test the risk appetite.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 5 points, with the DAX up by 48 points.

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