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Economic Calendar:

Friday, 25^th October

• GfK German Consumer Climate (Nov)

• German Business Expectations / Current Assessment / Ifo Business Climate Index (Oct)

The Majors

It was a 4^th consecutive day in the green for DAX30 and EuroStoxx600 on Thursday, with the CAC40 reversing a Wednesday pullback.

The EuroStoxx600 led the way, rising by 0.59%, with the DAX30 and CAC40 up by 0.58% and by 0.55% respectively.

Brexit uncertainty continued to pin the majors back as the markets awaited the EU’s decision on the Brexit extension request.

While geopolitics was negative on the day, corporate earnings provided the necessary support.

The Stats

It a particularly busy day on the Eurozone economic calendar on Thursday. Key stats from the Eurozone included prelim October Private sector PMIs for France, Germany and the Eurozone.

According to the Markit surveys,

The French Manufacturing PMI rose from 50.1 to 50.5 in October, according to the prelim survey. Economists had forecast a PMI of 50.0.

Service sector activity also picked up, with the October PMI rising from 51.1 to 52.9, coming in well above a forecast of 51.6.

The pickup in private sector activity led to a rise in the composite from 50.8 to 52.6.

From Germany, the Manufacturing PMI rose by 41.7 to 41.9 in October. Economists had forecast a rise to 42.0. The German Service PMI disappointed, however, with the PMI falling from 51.4 to 51.2.

Supported by a slower rate of decline in the manufacturing sector, the Composite PMI rose from 48.5 to 48.6.

For the Eurozone, the Manufacturing PMI held steady at 45.7, coming up short of a forecast of 46.1, while the Services PMI rose from 51.6 to 51.8. Economists had forecast a rise to 51.9.

The Eurozone Composite PMI rose from 50.1 to 50.2 in October, coming up short of a forecast of 50.3. According to the prelim PMI survey,

• The flash Eurozone Composite PMI hit a 2-month high.

• Manufacturing sector output took another hit in October, with service sector growth at its weakest since 2014.

• Future expectations fell to its most pessimistic since 2013, with job growth at its lowest level since 2014.

• New orders for both goods and services fell for a 2^nd consecutive month.

• Improved activity across the French private sector prevented a Eurozone contraction.

Outside of the stats, the ECB also delivered its October monetary policy decision. There were no surprises, however, in the wake of last month’s sizeable stimulus package.

From the U.S, Core Durable Goods Orders fell by 3% in September, reversing a 0.3% rise in August. Durable goods orders were also in decline, sliding by 1.1%. In August, durable goods orders had risen by 0.3%.