European Equities: U.S Inflation and FOMC Member Chatter in Focus
Wednesday, 11th August
German Inflation Rate YoY Final JUL
Italian Inflation Rate YoY Final JUL
Thursday, 12th August
Eurozone Industrial Production YoY JUN
Eurozone Industrial Production MoM JUN
Friday, 13th August
France Inflation Rate YoY Final JUL
Eurozone Balance of Trade JUN
It was a relatively bullish day for the European majors on Tuesday.
The CAC40 and the DAX30 rose by 0.10% and by 0.16% respectively, with the EuroStoxx600 ending the day up by 0.35%.
Disappointing economic data from the Eurozone pegged back the majors. A continued spread of the Delta variant was also market negative early in the week.
Market optimism towards the Eurozone economic recovery continued to deliver support, however.
Economic data was on the lighter side once more on Tuesday, with economic sentiment figures in focus.
In August, Germany’s ZEW Economic Sentiment Index fell from 63.3 to 40.4, versus a forecasted decline to 55.1.
Things were not much better for the euro bloc, with the ZEW Economic Sentiment Index for the Eurozone falling from 61.2 to 42.7. Economists had forecast a decline to 45.6.
From the U.S
It was a relatively quiet day on the economic calendar.
1st estimate unit labor costs and nonfarm productivity figures for the 2nd quarter were in focus.
Unit labor costs rose by 1.0%, following a 2.8% increase in the previous quarter. Nonfarm productivity increased by 2.3% after a 4.3% jump in the previous quarter.
Economists had forecast unit labor costs and nonfarm productivity to rise by 1.4% and by 3.2% respectively.
The Market Movers
For the DAX: It was a mixed day for the auto sector on Tuesday. BMW and Daimler fell by 0.03% and by 0.52% respectively. Continental and Volkswagen ended the day with modest gains of 0.66% and 0.12% respectively, however.
It was a bearish day for the banks. Deutsche Bank slipped by 0.14%, with Commerzbank falling by 0.90%.
From the CAC, it was a relatively bearish day for the banks. BNP Paribas and Credit Agricole fell by 0.35% and by 0.29% respectively, with Soc Gen declining by 0.63%.
It a mixed day for the French auto sector, however. Stellantis NV fell by 0.26%, while Renault rose by 0.04%.
Air France-KLM slipped by a further 0.54%, while Airbus SE ended the day up by 0.35%.
On the VIX Index
It was a 2nd consecutive day in the green for the VIX on Tuesday.
Following a 3.53% gain on Monday, the VIX rose by 0.42% to end the day at 16.79.
The NASDAQ fell by 0.49%, while the Dow and the S&P500 ended the day up by 0.46% and by 0.10% respectively.
The Day Ahead
It’s a particularly quiet day ahead on the Eurozone’s economic calendar. Finalized July inflation figures for Germany and Italy are the only major stats of the day.
Barring any marked revisions, however, we don’t expect too much influence from the numbers.
From the U.S, July inflation figures due out late in the European session will influence, however.
Away from the economic calendar, central bank chatter and COVID-19 news updates will also need monitoring.
FOMC members George and Bostic are scheduled to speak in the latter part of the day.
In the futures markets, at the time of writing, the Dow Mini was down by 4 points.
For a look at all of today’s economic events, check out our economic calendar.