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Economic Calendar

Monday, 17^th January

Italy CPI (MoM) (Dec) Final

Tuesday, 18^th January

German ZEW Current Conditions (Jan)

German ZEW Economic Sentiment (Jan)

Eurozone ZEW Economic Sentiment (Jan)

Wednesday, 19^th January

German CPI (MoM) (Dec) Final

Thursday, 20^th January

German PPI (MoM) (Dec)

Eurozone Core CPI (YoY) (Dec) Final

Eurozone CPI (YoY) (Dec) Final

Eurozone CPI (MoM) (Dec) Final

The Majors

It was a bearish end to the week for the European majors on Friday. The EuroStoxx600 slid by 1.01%, with the CAC40 and the DAX30 ending the day with losses of 0.81% and by 0.93% respectively.

Following some particularly hawkish chatter from FOMC members on Thursday, disappointing economic data from the Eurozone and the U.S weighed. Adding to the bearish mood was a negative outlook from JPMorgan Chase. Corporate earnings results from the U.S. Citi, JPMorgan Chase, and Wells Fargo were due out on the day.

Ahead of the European open, economic data from China had been upbeat but not enough to support the majors throughout the session.

In December, China’s USD trade surplus widened from $71.71bn to $94.46bn, with exports up 20.9% year-on-year.

The Stats

It was a busier day on the Eurozone economic calendar. Finalized inflation figures for France and Spain were in focus along with trade data for the Eurozone.

French inflation

France’s annual rate of inflation held steady at 2.8% in December, which was in line with prelim figures.

Month-on-month, consumer prices increased by 0.2% after having risen by 0.4% in November, which was in line with prelim figures.

According to Insee.fr,

• Energy prices fell by 0.9%, month-on-month, after having risen by 1.5% in November.

• The prices of services were up 0.4% versus 0.2% in November and food prices were up 0.5% versus 0.4% in the month prior.

• Year-on-year, core inflation was up 2.0%, however, which was up from 1.7% in November.

  • Prices for manufactured goods were up 1.2% versus 0.8% in November.

  • Food prices rose by 1.4% after a 0.5% in November.

Spanish Inflation

Spain’s annual rate of inflation accelerated from 5.5% to 6.5%, which was down from a prelim 6.7%.

Eurozone Trade

In November, the Eurozone’s goods trade balance narrowed from €3.3bn surplus to €1.5bn deficit versus a forecasted €7.6bn surplus.

According to Eurostat,

• Euro area exports of goods to the rest of the world increased by 14.4% to €225.1bn, compared with Nov-2020.

• Imports from the rest of the world were up 32% to €226.6bn, compared with Nov-2020.

• The rise in imports was as a result of an increase in the value of energy imports.

• In Nov-2020, the Eurozone had a €25bn surplus.

• The last time the Eurozone recorded a deficit was in Jan-2014.

• Intra-euro area trade rose to €204.3bn in Nov-2021, up by 22.1% compared with Nov-2020.