European Equities: Eurozone Trade Data, Lagarde, and U.S Stats in Focus

Industrial production was up by 5.3%, year-on-year, in August versus a forecasted 5.8% increase. In July, production had been up by 6.4%.

Fixed asset investment was up 8.9% versus a forecasted 9.0%. In July, fixed asset investments had been up 10.3%.

The disappointing numbers from China raised more red flags over the economic outlook.

The Stats

Wage growth and industrial production figures for the Eurozone were the key stats of the day.

In the 2^nd quarter, wages fell by 0.4%, quarter-on-quarter. Wages had grown by 2.1% in the previous quarter.

In August, industrial production increased by 1.5%, month-on-month, reversing a 0.1% decline from July. Economists had forecast a 0.6% increase.

Other stats on the day included finalized inflation figures from France and Italy, which had a muted impact on the majors.

From the U.S

In September, the NY Empire State Manufacturing Index rose from 18.3 to 34.3. Economists had forecast a decline to 18.0.

Industrial production figures were also upbeat, with production up 0.4% in August versus a forecasted 0.4% increase. In July, industrial production had risen by 0.8%.

The Market Movers

For the DAX: It was a mixed day for the auto sector on Wednesday. Volkswagen fell by 0.31% to buck the trend. BMW rallied by 1.24%, however, with Daimler and Continental seeing gains of 0.17% and 0.60% respectively.

It was also a mixed day for the banks. Deutsche Bank rose by 0.23%, while Commerzbank fell by 1.65%.

From the CAC, it was a mixed day for the banks. BNP Paribas and Credit Agricole ended the day up by 0.45% and by 0.14% respectively. Soc Gen bucked the trend, however, falling by 0.17%.

It was also a mixed day for the French auto sector. Stellantis NV rallied by 2.29%, while Renault slipped by 0.75%.

Air France-KLM and Airbus SE ended the day down by 1.45% and by 0.35% respectively.

On the VIX Index

It was back into the red for the VIX on Wednesday, marking a 2^nd loss in 5 sessions.

Reversing a 0.46% gain from Tuesday, the VIX fell by 6.58% to end the day at 18.18.

On Wednesday, the Dow rose by 0.68%, with the NASDAQ and S&P500 ending the day up by 0.82% and by 0.85% respectively.

The Day Ahead

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

Trade data for the Eurozone will be in focus later this morning. With little else for the markets to consider in the early part of the day, expect the numbers to influence.

Economic data from the U.S will likely have a greater impact, however. Retail sales, jobless claims, and Philly FED Manufacturing PMI figures are due out later in the day.

On the monetary policy front, ECB President Lagarde is also scheduled to speak ahead of the U.S numbers.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 28 points.

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