In This Article:
Economic Calendar:
Thursday, 12th September
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German CPI m/m (Aug) Final
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French CPI m/m (Aug) Final
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French HICP m/m (Aug) Final
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Eurozone Industrial Production m/m (Jul)
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Deposit Facility Rate (Sep)
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ECB Interest Rate Decision (Sep)
Friday, 13th September
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Spanish CPI y/y (Aug) Final
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Spanish HICP y/y (Aug) Final
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Wages in eurozone y/y (Q2)
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Eurozone Trade Balance (Jul)
The Majors
It was risk-on through the day on Wednesday. The EuroStoxx600 led the way, rising by 0.85%. The DAX30 wasn’t far behind, gaining 0.74% to mark a 5th consecutive day in the green, while the CAC40 trailed with a 0.44% gain.
In spite of negative sentiment towards the Eurozone economy and global trade terms, it’s been a bullish start to the month. The DAX was up by 3.52% to Wednesday’s close, with the EuroStoxx600 and CAC40 up by 2.7% and 2.51% respectively.
The majors continued to find support from hopes of the ECB delivering later today and the FED cutting rates next week.
On the geopolitical front, U.S – China trade tensions eased ahead of next month’s talks. News hit the wires on Wednesday of China listing a range of U.S products that would be exempt from tariffs due to be introduced in response to the latest U.S tariffs.
From the UK, the Court of Sessions overturned its original ruling on the lawfulness of Johnson’s suspension of Parliament. Another blow for the Brexiteer Prime Minister was also a positive for the majors.
The Stats
It was a particularly quiet day on the Eurozone economic calendar on Wednesday, with no material stats out of the Eurozone to provide the majors with direction.
From the U.S, August wholesale inflation figures had a muted impact on the European majors late in the session, in spite of a pickup in inflationary pressures. The numbers are unlikely to have an influence on the FED’s interest rate decision next week. Month-on-month, the core producer price index rose by 0.3% in August, reversing a 0.1% fall in July.
The Market Movers
From the DAX, the positive trade news from China provided tech stocks with support. Infineon Tech led the way, rallying 3.16%, with Wirecard rising by 1.87%.
It was a mixed day for the banks on Wednesday, with the prospects of lower interest rates negative for net interest margins and the bottom line. Deutsche Bank rose by just 0.08%, while Commerzbank fell by 0.97%.
For the auto sector, it was also a mixed bag. Continental and BMW saw red on the day, falling by 0.19% and by 0.02% respectively. Daimler and Volkswagen bucked the trend, rising by 1% and by 0.69% respectively.