Euro Zone News

German Inflation, U.S Consumer Confidence, and COVID-19 in Focus

The Majors

It was a relatively bullish start to the week for the European majors on Monday. The DAX30 and CAC40 rose by 0.47% and by 0.45% respectively, with the EuroStoxx600 gaining 0.15%.

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

COVID-19 news updates continued to weigh on the majors with Germany talking of a possible need to reintroduce containment measures. The news followed Chancellor Merkel’s decision to U-turn on lockdown measures last week.

Through the early part of the day, the European markets also reacted to news of hedge fund Archegos defaulting on margin calls. Warnings of significant losses across the banking sector pegged the majors back.

The Stats

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

From the U.S

It was also a particularly quiet day on the U.S economic calendar, with no major stats from the U.S to influence.

The Market Movers

For the DAX: It was a bullish day for the auto sector on Monday. BMW and Volkswagen rose by 1.90% and 1.71% respectively. Continental and Daimler saw relatively modest gains of 0.76% and 0.83% respectively.

It was a bearish day for the banks, however. Deutsche Bank slid by 2.52%, with Commerzbank falling by 1.42%.

From the CAC, it was a bearish day for the banks. BNP Paribas and Soc Gen slid by 1.94% and by 2.41% respectively, with Credit Agricole declining 0.69%.

It was a relatively bullish day for the French auto sector, however. Stellantis NV and Renault ended the day with modest gains of 0.10% and 0.16% respectively.

Air France-KLM rose by 0.36%, while Airbus SE slipped by 0.29% on the day.

On the VIX Index

It was back in the green for the VIX on Monday, following two consecutive days in the red.

Reversing a 4.80% fall from Friday, the VIX rose by 9.97% to end the day at 20.74.

The Dow rose by 0.30%, while the NASDAQ and the S&P500 fell by 0.60% and 0.09% respectively.

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