European Equities: U.S Inflation and Corporate Earnings in Focus
Wednesday, 13th October
German CPI (MoM) (Sep) Final
Eurozone Industrial Production (MoM) (Aug)
Thursday, 14th October
Spanish CPI (YoY) (Sep) Final
Spanish HICP (YoY) (Sep) Final
Friday, 15th October
French CPI (MoM) (Sep) Final
French HICP (MoM) (Sep) Final
Italian CPI (MoM) (Sep) Final
Eurozone Trade Balance (Aug)
It was a bearish day for the European majors on Tuesday.
The EuroStoxx600 slipped by 0.07%, with the CAC40 and the DAX30 both ending the day down by 0.34% respectively.
Economic data was on the lighter side, leaving the majors with little to shift focus away from inflation and corporate earnings apprehension.
ZEW economic sentiment figures from Germany and the Eurozone failed to deliver support. Concerns over the economic outlook continued to weigh on sentiment and ultimately the European majors.
Following a testy start to the week, inflation figures from the U.S and the FOMC meeting minutes later today will be key.
ZEW Economic Sentiment figures for Germany and the Eurozone were in focus early in the European session.
Germany’s ZEW Current Conditions indicator for October fell from 31.9 to 21.6 versus a forecasted 28.5. The Economic Sentiment Indicator fell from 26.5 to 22.3 versus a forecasted 24.0.
For the Eurozone, the Economic Sentiment Indicator fell from 31.1 to 21.0.
From the U.S
JOLTs job openings were in focus late in the European session.
In August, JOLT’s job openings fell from 11.098m to 10.439m versus a forecasted decline to 10.925m.
The Market Movers
For the DAX: It was a bearish day for the auto sector on Tuesday. Continental and Daimler fell by 0.37% and by 0.54% respectively, with BMW seeing a modest 0.03% loss. Volkswagen led the way down, however, falling by 1.36%.
It was a mixed day for the banks, however. Deutsche Bank fell by 0.52%, while Commerzbank ended the day up by 0.25%.
From the CAC, it was a mixed day for the banks. Credit Agricole slid by 1.31%, with BNP Paribas and Soc Gen ending the day down by 0.24% and by 0.18% respectively.
It was a bullish day for the French auto sector, however. Stellantis NV and Renault rose by 0.18% and by 0.82% respectively.
Air France-KLM fell by 1.38%, with Airbus SE ending the day down by 0.51%.
On the VIX Index
It was back into the red for the VIX on Tuesday, marking a 5 decline in 6-sessions.
Partially reversing a 6.55% rise from Monday, the VIX fell by 0.75% to end the day at 19.85.
The NASDAQ slipped by 0.14%, with the Dow and S&P500 ending the day down by 0.34% and by 0.24% respectively.
The Day Ahead
It’s a relatively quiet day ahead on the Eurozone’s economic calendar. Finalized inflation figures from Germany and Eurozone industrial production numbers will be in focus.
From the U.S, inflation data for September will be key, however, with the FOMC meeting minutes due out after the European close.
Ahead of the European open, economic data from China will set the tone, with trade data for September due out.
Away from the economic calendar, corporate earnings and crude oil prices will also need considering.
In the futures markets, at the time of writing, the Dow Mini was down by 43 points.
For a look at all of today’s economic events, check out our economic calendar.