Economic Calendar Thursday, 22nd July Eurozone Business Confidence ECB Interest Rate Decision ECB Press Conference Eurozone Consumer Confidence Flash
ECB Press Conference
Eurozone Consumer Confidence Flash
French Markit Manufacturing PMI Flash
French Markit Services PMI Flash
German Markit Services PMI Flash
German Markit Manufacturing PMI Flash
Eurozone Markit Services PMI Flash
Eurozone Markit Manufacturing PMI Flash
It was particularly bullish day for the majors on Wednesday, following Tuesday’s more modest gains.
The CAC40 rallied by 1.85%, with the DAX30 and the EuroStoxx600 ending the day up by 1.36% and by 1.65% respectively.
A shift in focus towards corporate earnings provided support, with the upside coming in spite of continued concerns over the Delta variant.
Market expectation of strong earnings and also a dovish ECB was the key combination for the majors mid-week.
There were no major stats to materially dent the recovery from Monday’s losses.
Following Wednesday’s rally, the CAC40 moved into positive territory for the current week, while the DAX30 and the EuroStoxx600 remained in the red.
It’s been a quiet start to the week on the economic calendar. Following a wholesale inflation figures from Germany on Tuesday, industrial sales figures from Italy were in focus.
In May, industrial sales decreased by 1.0%, partially reversing a 3.3% jump from April. Year-on-year, production was up by 40.2% versus a forecasted 45% increase. In April, production had been up by 105.1%.
According to iStat.it,
There were no major stats to provide the majors with direction later in the European session.
For the DAX: It was a bullish day for the auto sector on Wednesday. Volkswagen and Continental rallied by 2.43% and by 2.86% respectively. BMW and Daimler saw more modest gains of 1.08% and by 0.68% respectively.
It was a particularly bullish day for the banks. Deutsche Bank and Commerzbank ended the day up by 4.33% and by 2.65% respectively.
From the CAC, it was a bullish day for the banks. BNP Paribas rose by 3.15%, with Soc Gen and Credit Agricole rallying by 3.29% and 3.21% respectively.
It was also a bullish day for the French auto sector. Stellantis NV and Renault ended the day up by 3.43% and by 4.46% respectively.
Air France-KLM rose by 2.92%, with Airbus SE rallying by 4.38%.
It was a 2nd consecutive day in the red for the VIX on Wednesday.
Following a 12.31% slide on Tuesday, the VIX fell by 9.22% to end the day at 17.91.
The NASDAQ rose by 0.92%, with the Dow and the S&P500 ending the day up by 0.83% and by 0.82% respectively.
It’s a busy day ahead on the economic calendar.
Early in the European session, business confidence figures for the Eurozone will be in focus. While we expect the numbers to provide direction, the markets will be looking ahead to the ECB policy decision and press conference.
The ECB’s economic outlook and forward guidance on policy will be key. Following the ECB’s revision to its price stability objective, we can also expect plenty of Q&A on the new 2% objective.
After the ECB press conference, consumer confidence figures for the Eurozone will also influence.
From the U.S, jobless claims figures will also draw interest late in the European session. Market reaction may be delayed, however, with the release of the stats coinciding with the ECB press conference.
Away from the economic calendar, corporate earnings and COVID-19 news will also draw attention.
In the futures markets, at the time of writing, the Dow Mini was up by 18 points.
For a look at all of today’s economic events, check out our economic calendar.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.