European Equities: Consumer Sentiment and Central Bank Chatter in Focus

Economic Calendar

Tuesday, 28^th September

GfK German Consumer Climate (Oct)

Wednesday, 29^th September

Spanish HICP (YoY) (Sep) Prelim

Thursday, 30^th September

French Consumer Spending (MoM) (Aug)

German Unemployment Change (Sep)

German Unemployment Rate (Sep)

Italian CPI (MoM) (Sep) Prelim

Eurozone Unemployment Rate (Aug)

German CPI (MoM) (Sep) Prelim

Friday, 1^st October

German Retail Sales (MoM) (Aug)

Spanish Manufacturing PMI (Sep)

Italian Manufacturing PMI (Sep)

French Manufacturing PMI (Sep) Final

German Manufacturing PMI (Sep) Final

Eurozone Manufacturing PMI (Sep) Final

Eurozone CPI (YoY) (Sep) Prelim

The Majors

It was a mixed start to the week for the European majors on Monday.

The EuroStoxx600 fell by 0.09%, while the CAC40 and the DAX30 ended the day with gains of 0.19% and 0.27% respectively.

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

For the DAX30, the upside came off the back of the Federal Election result, with the Social Democrats winning.

Economic data from the U.S also delivered support, though concerns over Evergrande continued to peg the majors back.

The Stats

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

From the U.S

Economic data included durable goods and core durable goods orders.

In August, durable goods orders increased by 1.8%, with core durable goods orders up 0.2%. Durable goods orders had risen by 0.5% in July, with core durable goods orders up by 0.8%.

The Market Movers

For the DAX: It was a bullish day for the auto sector on Monday. Daimler rallied by 2.07% to lead the way, with BMW and Continental both ending the day up by 1.71% respectively. Volkswagen rose by a more modest 1.24%.

It was a bullish day for the banks. Deutsche Bank and Commerzbank saw gains of 2.63% and 3.11% respectively.

From the CAC, it was a bullish day for the banks. BNP Paribas and Soc Gen rose by 3.10% and by 3.17% respectively, with Credit Agricole rallying by 3.51.

It was also a bullish day for the French auto sector. Stellantis NV and Renault ended the day up by 1.04% and by 2.54% respectively.

Air France-KLM rallied by 5.61%, with Airbus SE rising by 1.59%.

On the VIX Index

A run of 4 consecutive days in the red came to an end for the VIX on Monday.

Partially reversing a 4.72% decline on Friday, the VIX rose by 5.69% to end the day at 18.76.

The Dow rose by 0.21%, while the NASDAQ and S&P500 ended the day down by 0.52% and by 0.28% respectively.

The Day Ahead

It’s a relatively quiet day ahead on the Eurozone’s economic calendar.

German consumer sentiment figures for September will be in focus early in the European session. With plenty of market sensitivity to business and consumer confidence, expect the numbers to influence.

From the U.S, consumer confidence figures for September will also provide direction late in the European session.

On the monetary policy front, ECB President Lagarde and FED Chair Powell are scheduled to speak, however. Expect any forward guidance on monetary policy to mute the effects the economic data on the majors.

The Futures

In the futures markets, at the time of writing, the Dow Mini was down by 8 points.

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

This article was originally posted on FX Empire

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