Euro Zone News

A Mild Financial Calendar Leaves U.S Stats to Take a look at Investor Sentiment

Thursday, 18th February

Eurozone Shopper Confidence (Flash)

Friday, 19th February

French CPI (MoM) (Jan) Last

French HICP (MoM) (Jan) Last

French Manufacturing PMI (Feb) Prelim

French Companies PMI (Feb) Prelim

German Manufacturing PMI (Feb) Prelim

German Companies PMI (Feb) Prelim

Italian CPI (MoM) (Jan) Last

Eurozone Manufacturing PMI (Feb) Prelim

Eurozone Markit Composite PMI (Feb) Prelim

Eurozone Companies PMI (Feb) Prelim

The Majors

It was a combined day for the European majors on Tuesday. Whereas the DAX30 and EuroStoxx600 fell by 0.32% and by 0.06% respectively, the CAC40 ended the day flat.

Financial information from early within the European session had offered assist to the majors earlier than a pullback later within the day.

Whereas optimism in direction of the financial outlook continues to assist the European majors and the broader markets, a level of uncertainty additionally lingers.

Containment measures stay in place because the EU progresses on the vaccination entrance. Till restrictions are eliminated the financial uncertainty will possible stay.

The Stats

It was a comparatively busy day on the financial calendar. Financial information included 2nd estimate GDP numbers for the Eurozone and ZEW financial sentiment figures for Germany and the Eurozone.

In response to 2nd estimates, the Eurozone financial system contracted by 0.6% within the 4th quarter. This was an upward revision from a 1st estimate 0.7% contraction.

Yr-on-year, the financial system contracted by 5.0%, which was additionally an upward revision from a 1st estimate 5.1% contraction.

In response to Eurostat,

  • The variety of employed individuals elevated by 0.3% in 4th quarter, in contrast with the threerd

  • Within the 3rd quarter of 2020, employment had elevated by 1.0%.

  • Yr-on-year, nonetheless, employment was down by 2.0%.

Germany’s ZEW Financial Sentiment Index rose from 61.8 to 71.2 for February. Economists had forecast a fall to 59.6.

The upside got here regardless of sentiment in direction of present circumstances fell deeper into the pink. For February, the ZEW Present Situations Index fell from -66.4 to -67.2. Economists had forecast a decline to -67.0.

For the Eurozone, the Financial Sentiment Index jumped from 58.3 to 69.8.

From the U.S

Key stats included NY Empire State Manufacturing Index figures.

In February, the NY Empire State Manufacturing Index elevated from 3.5 to 12.1. Economists had forecast an increase to six.0.

The Market Movers

For the DAX: It was combined day for the auto sector on Wednesday. BMW and Volkswagen noticed modest beneficial properties of 0.08% and 0.02% respectively. Continental and Daimler, nonetheless, ended the day down by 1.06% and by 0.20% respectively.

It was one other bullish day for the banks. Deutsche Financial institution rallied by 2.03%, with Commerzbank rising by 0.69%.

From the CAC, it was a comparatively bullish day for the banks. BNP Paribas and Soc Gen rose by 0.13% and by 0.03% respectively, with Credit score Agricole gaining 0.54%.

It was additionally a bullish day for the French auto sector, nonetheless. Stellantis NV rose by 0.94%, with Renault gaining 1.18%.

Air France-KLM slipped by 0.18%, whereas Airbus SE rose by 0.14%.

On the VIX Index

It was again into the inexperienced for the VIX on Tuesday. Reversing a 6.02% fall from Friday, the VIX rose by 7.46% to finish the day at 21.46.

The NASDAQ and the S&P500 fell by 0.06% and by 0.34% respectively, whereas the Dow gained 0.20%.

The Day Forward

It’s a quiet day forward on the European financial calendar. There aren’t any materials stats from the Eurozone to supply the majors with path.

The dearth of stats will depart the majors within the fingers of U.S stats and chatter from Capitol Hill.

From the U.S, wholesale inflation and retail gross sales figures are due out. Anticipate January’s retail gross sales figures to have an effect on the majors late within the session.

Chatter from Capitol Hill may even want continued monitoring.

In a single day, the FOMC assembly minutes are additionally due out. There may very well be some warning forward of the minutes. FED Chair Powell has continued to guarantee the markets that accommodative measures will stay for an prolonged time period. The minutes will must be aligned…

The Futures

Within the futures markets, on the time of writing, the Dow Mini was up by 9 factors.

For a have a look at all of right now’s financial occasions, try our financial calendar.

This text was initially posted on FX Empire

Extra From FXEMPIRE:

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