Yahoo Finance European Equities: Trade Data and Geopolitics in Focus
Economic Calendar:
Friday, 16th August
Eurozone Trade Balance (Jun)
The Majors
The European majors saw red for a 2nd consecutive day on Thursday. Leading the way down was the DAX30, which fell by 0.7% to leave the index down by 2.4% for the current week.
For the CAC40 and EuroStoxx600, the pair saw more modest losses of 0.27% and 0.29% respectively on the day.
Market sentiment towards the U.S – China trade war weighed on the European equity markets once more. Rising fears of a global recession pinned back the majors. Ahead of the European session, chatter from Beijing reversed any attempts at a rebound. China responded to the latest Trump olive branch saying that the delay in tariffs was not enough to hold back retaliatory measures.
The Stats
There were no material stats out of the Eurozone on Thursday to provide the majors with direction on the day. A lack of stats left the European majors in the hands of geopolitical risk ahead of the U.S session.
From the U.S, key stats included July retail sales, industrial production and manufacturing numbers out of NY State and Philly.
With the manufacturing sector activity waning globally, domestic consumption is key across the major economies. The numbers out of the U.S provided much-needed support to the European majors on the day. It was not enough on the day, however, with the recovery in response to the numbers brief.
The Market Movers
From the DAX, Lufthansa was the worst performer, sliding by 4.92%. Negative sentiment towards trade and the economy also weighed on Infineon Technologies and ThyssenKrupp, which fell by 3.32% and by 1.99% respectively.
From the banking sector, Deutsche Bank and Commerzbank slid by 3.35% and by 1.90% respectively.
Across the auto sector, it was also a sea of red. Continental and Daimler led the way down with losses of 3.09% and 2.37% respectively. Volkswagen and BMW saw more modest losses of 0.75% and by 0.69% respectively.
From the CAC, it was a mixed bag for the banking sector. BNP Paribas bucked the trend on the day, gaining 0.71%. Credit Agricole and Soc. Gen saw red, however, with the pair ending the day down by 0.22% and 0.42% respectively.
Renault and Peugeot joined their German peers deep in the red, with both sliding by 1.92% on Thursday.
The Day Ahead
It’s a relatively quiet day ahead on the Eurozone economic calendar. Key stats on the day include are limited to the Eurozone’s June trade data.
While we can expect the stats to provide direction in the early part of the day, sentiment towards the global economy and any chatter on trade will remain the key drivers.
From the U.S, any material fall in consumer sentiment figures due out later today and expect the European majors to come under pressure.
In the Futures Markets, at the time of writing, the DAX was up by 11.5 points, while the Dow Mini was up by 45 points.
This article was originally posted on FX Empire
