European Equities: U.S Jobless Claims and Corporate Earnings in Focus
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 bullish day for the European majors on Wednesday.
The DAX30 rose by 0.68%, with the CAC40 and the EuroStoxx600 ending the day up by 0.75% and by 0.70% respectively.
Economic data from the Eurozone failed to impress once more, with industrial production across the Eurozone in the red.
Ahead of the European open, trade data from China had set the tone.
In September, China’s USD trade surplus widened from $58.34bn to $66.76bn driven by a 28.1% increase in exports, year-on-year. Exports had been up 25.6% in August, year-on-year. Imports rose by a more modest 17.6% after having been up 33.1% in August.
While the numbers influenced, corporate earnings delivered support on the day.
Finalized inflation figures for Germany and industrial production figures for the Eurozone were in focus.
In September, consumer prices remained unchanged, month-on-month, which as in line with prelim figures. Consumer prices had risen by 0.9% in August.
The annual rate of inflation, however, accelerated from 3.9% to 4.1%, which was also in line with prelim figures.
Eurozone Industrial Production
In August, industrial production fell by 1.6% versus a forecasted 1.6% decline. Production had risen by 1.4% in July.
From the U.S
September inflation figures were the key stats of the day.
In September, the annual core rate of inflation held steady at 4.0%, which was in line with forecasts. Month-on-month, core consumer prices increased by 0.2% following a 0.1% rise in August. Economists had forecast a 0.2% increase.
Month-on-month, consumer prices rose by 0.4%, following a 0.3% increase in August. Economists had forecast a 0.3% increase.
The Market Movers
For the DAX: It was a mixed day for the auto sector on Wednesday. BMW and Daimler fell by 0.91% and by 1.21% respectively. Continental and Volkswagen found support, however, rising by 0.64% and by 2.86% respectively.
It was a particularly bearish day for the banks, however. Deutsche Bank and Commerzbank slid by 4.41% and by 5.52% respectively.
From the CAC, it was a bearish day for the banks. BNP Paribas fell by 1.45%, with Credit Agricole and Soc Gen ending the day down by 0.74% and by 1.18% respectively.
It was also a bearish day for the French auto sector. Stellantis NV and Renault fell by 0.15% and by 1.83% respectively.
Air France-KLM fell by 1.20%, with Airbus SE ending the day down by 0.79%.
Positive quarterly sales delivered a boost for LVMH and luxury brands, with LVMH and Hermes rising by 3.16% and by 2.71% respectively.
On the VIX Index
It was a second consecutive day in the red for the VIX on Wednesday, marking a 6 decline from 7-sessions.
Following a 0.75% decline on Tuesday, the VIX fell by 6.10% to end the day at 18.64.
The Dow ended the day flat, while the NASDAQ and the S&P500 rose by 0.73% and by 0.30% respectively.
The Day Ahead
It’s a relatively quiet day ahead on the Eurozone’s economic calendar. Finalized inflation figures from Spain are due out that will likely have a muted impact on the majors.
From the U.S, wholesale inflation data for September and weekly jobless claims will be key, however.
Ahead of the European open, the overnight FOMC meeting minutes and economic data from China will set the tone. Inflation figures for September are due out from China early in the day.
Away from the economic calendar, corporate earnings and crude oil prices will also need monitoring.
In the futures markets, at the time of writing, the Dow Mini was up by 32 points.
For a look at all of today’s economic events, check out our economic calendar.