Yahoo Finance European Equities: A Busy Economic Calendar Will Influence
Economic Calendar:
Wednesday, 3rd July
Spanish Services PMI (Jun)
Italian Services PMI (Jun)
French Services PMI (Jun) Final
German Services PMI (Jun) Final
Eurozone Markit Composite PMI (Jun) Final
Eurozone Services PMI (Jun) Final
Thursday, 4th July
Eurozone Retail Sales m/m (May)
Friday, 5th July
German Factory Orders m/m (May)
German Industrial Production m/m (May)
The Majors
The European majors saw green for a 3rd consecutive day on Tuesday. Leading the way on the day was the EuroStoxx600, which rose by 0.37%. The CAC40 and DAX30 saw more modest gains of 0.16% and 0.04% respectively.
Following the G20 Summit fuelled gains from Friday and Monday, the markets were somewhat more cautious on Tuesday.
Weak manufacturing PMI numbers out of China and the Eurozone on Monday and gloomy central bank chatter tested the majors. The DAX managed to claw its way back into positive territory late in what was a choppy session.
The Stats
Economic data out of the Eurozone was on the lighter side on the day.
Key stats due out of the Eurozone included German retail sales figures for May and Spanish unemployment change numbers.
According to Destatis, German retail sales figures slid by 0.6% in May, month-on-month, following a 2% fall in April. Economists had forecast a 0.5% rise. Year-on-year, however, retail sales were up by 4%.
Adding to the negative sentiment on the day was a disappointing Spanish labor market numbers. Unemployment fell by 63.8k, which was less than a forecasted 90k. Unemployment fell by 84.1k
There were no material stats out of the U.S on the day to provide direction late on in the European session. While there were no stats, U.S Treasury yields were on the back foot as the markets refocused on the global economic outlook.
Oil prices tumbled alongside yields as the markets had a delayed reaction to the disappointing manufacturing PMI numbers from Monday.
The Market Movers
From the DAX, the auto sector was amongst the laggards, with Continental and Daimler falling by 2.08% and 0.49% respectively. Volkswagen and BMW managed to hold onto gains, however, with the pair ending the day up by 0.77% and by 0.38% respectively.
The banking sector also failed to provide support, with Deutsche Bank and Commerzbank ending the day down by 0.62% and 2.72% respectively.
From the CAC, BNP Paribas and Credit Agricole fell by 0.52% and 0.32% respectively, while Renault slid by 1.09% on the day.
The Day Ahead
It’s a busy day ahead.
Key stats include Germany, France and the Eurozone’s finalized June service sector PMI numbers. Ahead of the finalized figures, Spain and Italy’s service sector PMIs will also be in focus.
We can expect the Eurozone composite to be considered the Eurozone’s economic barometer. The European majors have shown greater sensitivity to the service sector numbers of late. Weak demand for EU goods has left the Eurozone economy more dependent upon service sector activity.
Expect any downward revisions to finalized figures to weigh as the headlines return to highlight economic doom and gloom.
From the U.S, ADP nonfarm figures, the market’s preferred ISM non-manufacturing PMI, and factory orders will also provide direction late in the session.
At the time of writing, the DAX was up by 3 points. The Dow Mini was down by 37 points.
This article was originally posted on FX Empire
