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European Equities: A Busy Economic Calendar to Guide the Majors Following Monday’s Losses
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It's a busy day ahead on the economic calendar, with Services and Composite PMIs in focus. The markets will likely look beyond the headline figures, with inflation concerns lingering...
In this article:
French Services PMI (Sep)
German Services PMI (Sep) Final
Eurozone Markit Composite PMI (Sep) Final
Eurozone Services PMI (Sep) Final
Wednesday, 6th October
German Factory Orders (MoM) (Aug)
German IHS Markit Construction PMI (Sep)
Eurozone Retail Sales (MoM) (Aug)
Thursday, 7th October
German Industrial Production (MoM) (Aug)
Friday, 8th October
German Trade Balance (Aug)
The Majors
It was a bearish start to the week for the European majors on Monday.
The DAX30 fell by 0.79%, with the EuroStoxx600 and the CAC40 ending the day down by 0.47% and by 0.61% respectively.
There were no major stats from the Eurozone for the markets to consider on the day, leaving the majors in the hands of the U.S.
Concerns over inflation and the economic outlook remained key negatives for the markets, leaving dip buyers on the sidelines.
The Stats
Unemployment figures from Spain drew little interest at the start of the week.
In September, unemployment fell by 76.1k after having fallen by 82.6k in August.
From the U.S
Factory orders were in focus late in the European session.
In August, factory orders increased by 1.2% versus a forecasted 1.0% rise. Orders had increased by 0.7% in July.
The Market Movers
For the DAX: It was a bearish day for the auto sector on Monday. Volkswagen slid by 1.45%, with Continental falling by 1.17%. BMW and Daimler saw modest losses of 0.13% and 0.36% respectively.
It was a mixed day for the banks, however. Deutsche Bank fell by 1.07%, while Commerzbank ended the day up by 1.39%.
From the CAC, it was a bearish day for the banks. BNP Paribas and Soc Gen fell by 0.95% and by 0.82% respectively, with Credit Agricole declining by 0.36%.
It was also a bearish day for the French auto sector. Stellantis NV and Renault saw losses of 0.80% and 0.45% respectively.
Air France-KLM bucked the broader market trend with a 1.02% gain, while Airbus SE slid by 2.50%.
On the VIX Index
It was a back into the green for the VIX on Monday.
Reversing an 8.60% fall from Friday, the VIX rose by 8.56% to end the day at 22.96.
The NASDAQ slid by 2.14 %, with the Dow and S&P500 ending the day down by 0.94% and by 1.30% respectively.
The Day Ahead
It’s a particularly busy day ahead on the Eurozone’s economic calendar.
Service sector PMIs for Italy and Spain and finalized service and composite PMIs for France, Germany, and the Eurozone will be in focus.
Barring marked revision to France and Germany’s numbers, expect Italy and the Eurozone’s PMIs to be key.
From the U.S, the market’s favored ISM Non-Manufacturing PMI numbers will also influence. While we expect plenty of direction from the headline figure, expect some focus on cost pressures, new business, and employment.
Away from the economic calendar, China will likely remain an area of focus as Evergrande continues to grab headlines.
The Futures
In the futures markets, at the time of writing, the Dow Mini was down by 55 points.
For a look at all of today’s economic events, check out our economic calendar.
About the Author
Bob Masonauthor
With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.
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