European Equities: U.S Stats, Capitol Hill, and the Brexit Vote in Focus

The Majors

It was a mixed day for the European majors on Tuesday. The DAX30 slipped by 0.21%, while the CAC40 and EuroStoxx600 saw gains of 0.42% and 0.76% respectively.

There were no major stats from the Eurozone or the U.S to provide the majors with direction on the day.

Brexit continued to deliver support ahead of today’s UK Parliamentary vote. Expectations of more U.S stimulus and COVID-19 vaccine news also supported the European majors on the day.

The Stats

It was a particularly quiet day on the economic calendar. There were no material stats from the Eurozone to provide the majors with direction.

From the U.S

It was a quiet day on the economic data front. House price figures were in focus late in the session, which had a muted impact on the European majors.

In October, the S&P/CS HPI Composite – 20 n.s.a rose by 7.9%, year-on-year, following a 6.6% increase in September. Economists had forecast a 6.9% rise.

The Market Movers

For the DAX: It was a bearish day for the auto sector on Tuesday. Daimler and Volkswagen fell by 1.11% and by 0.98% respectively to lead the way down. BMW and Continental saw more modest losses of 0.23% and 0.73% respectively.

It was also a bearish day for the banks. Deutsche Bank slid by 2.43%, with Commerzbank falling by 1.49%

From the CAC, it was a mixed day for the banks. BNP Paribas and Credit Agricole rose by 0.03% and by 0.05% respectively. Soc Gen bucked the trend, falling by 0.54%.

It was also a mixed day for the French auto sector. Peugeot fell by 0.84%, while Renault ended the day up by 0.40%.

Air France-KLM rallied by 4.63%, with Airbus SE rising by 1.19%.

On the VIX Index

There was a 2^nd consecutive day in the green for the VIX on Tuesday. Following a 0.79% gain on Monday, the VIX rose by 6.36% to end the day at 23.08.

The Dow and S&P500 both fell by 0.22%, with the NASDAQ ending the day down by 0.38%.

Through the U.S session, uncertainty over stimulus weighed on the majors that had hit fresh highs on the day. News of members of the senate planning to block the increase in payments from $600 to $2,000 weighed.

A continued surge in new COVID-19 cases amidst the ongoing vaccinations and the existence of the UK strain of the virus in the U.S were also negatives on the day.

The Day Ahead

It’s a quiet day ahead on the economic calendar. Prelim December inflation figures from Spain are due out early in the European session.

The stats are unlikely to have an impact on the European majors, however.

From the U.S, it’s a busier day on the economic calendar. Key stats include November trade and home sales figures, along with December’s PMI for Chicago.

Barring particularly dire trade figures, expect Chicago’s PMI to garner the greatest interest.

Away from the economic calendar, the Brexit vote in the House of Commons, COVID-19, and chatter from Capitol Hill will also influence.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 3 points, while the DAX was down by 76 points

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