Yahoo News European Equities: Futures Point to the Red, with COVID-19 and U.S Politics in Focus
Economic Calendar:
Thursday, 29th October
German Unemployment Change (Oct)
German Unemployment Rate (Oct)
Spanish CPI (YoY) Prelim
Spanish HICP (YoY) (Oct) Prelim
Deposit Facility Rate (Oct)
ECB Monetary Policy Decision / Statement / Press Conference
German CPI (MoM) (Oct) Prelim
Friday, 30th October
French GDP (QoQ) (Q3) 1st Estimate
German GDP (Q3) 1st Estimate
German Retail Sales (MoM) (Sep)
French Consumer Spending (MoM) (Sep)
French CPI / HICP (Oct) Prelim
Italian CPI (MoM) Prelim
Spanish GDP (QoQ) (Q3) 1st Estimate
Italian CPI (MoM) (Oct) Prelim
Eurozone Inflation / GDP / Unemployment Rate
The Majors
It was 2nd consecutive day in the red for the European majors on Tuesday. The CAC40 fell by 1.77%, with the DAX30 and the EuroStoxx600 seeing losses of 0.93% and by 0.95% respectively.
Concerns over the effects of the 2nd wave of the COVID-19 pandemic on the European and global economy continued to weigh.
From the U.S, hopes of any stimulus package ahead of the U.S Presidential Election also faded, which added further pressure on the majors.
The Stats
It was another relatively quiet day on the Eurozone economic calendar. Key stats included jobseeker figures from France.
The total number of jobseekers stood at 3,606.3k in September, which was down from 3,621.5k in August.
While there was a decline in the number of jobseekers, the stats had a muted impact on the European majors.
From the U.S
It was a busier day on the economic calendar. Key stats included September durable goods and core durable goods orders and October consumer confidence figures.
In September, durable goods orders jumped by 1.9%, following a 0.4% increase in August, with core durable goods rising by 0.8%. In August, core durable goods had risen by 1.0%. Economists had forecast increases of 0.5% and 0.4% respectively.
The positive numbers failed to reverse losses from earlier in the day, however.
Late in the session, U.S consumer confidence disappointed. In October, the CB Consumer Confidence Index fell from 101.3 to 100.9. Economists had forecast a rise to 102.0.
The Market Movers
For the DAX: It was another particularly bearish day for the auto sector on Tuesday. Continental slid by 4.13% to lead the way down, with BMW declining by 3.73%. Daimler and Volkswagen weren’t far behind, with losses of 3.34% and 3.48% respectively.
It was also a bearish day for the banks. Deutsche Bank slid by 3.52%, with Commerzbank slumping by 4.59%
From the CAC, it was a particularly bearish day for the banks. BNP Paribas and Credit Agricole slid by 4.78% and by 4.46% respectively. Soc Gen tumbled by 5.09%, however, to lead the way down.
It was also a bearish day for the French auto sector. Peugeot fell by 2.35%, with Renault sliding by 6.59%.
Air France-KLM fell by 3.67%, with Airbus SE ending the day with a 2.81% loss.
On the VIX Index
It was a 2nd consecutive day in the green for the VIX on Tuesday. Following on from a 17.82% surge on Monday, the VIX rose by 2.74% to end the day at 33.35.
COVID-19 updates and the continued lack of progress towards a U.S Stimulus package weighed further on riskier assets on the day.
Some uncertainty over a Democratic clean sweep also crept into the markets on the day.
On Tuesday, the Dow and S&P500 fell by 0.80% and 0.30% respectively, while the NASDAQ rose by 0.64%. The upside for the NASDAQ came ahead of major tech corporate earnings releases this week.
The Day Ahead
It’s a particularly quiet day on the Eurozone economic calendar. There are no material stats due out of the Eurozone to provide the European majors with direction.
From the U.S, September trade and retail inventory numbers due out late in the European session should have a muted impact on the majors.
Key drivers on the day will continue to be Brexit, COVID-19, and U.S politics. The U.S Presidential Election is just 7-days away.
With hopes of a stimulus package fading, the Presidential Election polls are also raising some uncertainty. Biden’s lead in the swing states is narrow, which raises doubts over a blue wave…
The Futures
In the futures markets, at the time of writing, the Dow was up by 145 points, with the DAX down by 144.5 points.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
