European Equities: A Fresh Impetus Needs with Stats Unlikely to Influence

In This Article:

Economic Calendar:

Tuesday, 9th June

German Trade Balance (Apr)

Eurozone GDP (QoQ) (Q1)

Eurozone  GDP (YoY) (Q1)

Thursday, 11th June

French Non-Farm Payrolls (QoQ) (Q1)

Friday, 12th June

French CPI (MoM) (May) Final

French HICP (MoM) (May) Final

Spanish CPI (YoY) (May) Final

Spanish HICP (YoY) (May) FInal

Eurozone  Industrial Production (MoM) (Apr)

The Majors

It was a bearish start to the week for the European majors on Monday, with the CAC40 falling by 0.43% to lead the way down.

The DAX30 and EuroStoxx600 weren’t far behind, with losses of 0.22% and 0.32% respectively.

A lack of economic data left the majors in the red, as the markets weighed up the impact of the pandemic and the economic outlook.

Ahead of the European open, disappointing trade data from China tested support as protests against racism continued to spread globally.

The Stats

It was a quiet day on the Eurozone economic calendar on Monday. German industrial production figures for April were in focus but had little influence on the majors.

Industrial production tumbled by 17.9% in April, following a 9.2% slide in March. This was the largest decline since records began back in January 1991.

According to Destatis,

  • Production in industry excluding energy and construction was down by 22.1%.

  • Within industry, the production of intermediate goods decreased by 13.8% and the production of consumer goods by 8.7%.

  • The production of capital goods slumped by 35.3%, with the automotive industry seeing an even larger 74.6% decline.

  • Outside industry, energy production was down by 7.2% and the production in construction decreased by 4.1%.

  • Year-on-year, industrial production fell by 25.3%.

From the U.S

There were no stats from the U.S to provide direction later in the day.

The Market Movers

For the DAX: It was another bullish day for the auto sector on Monday. BMW and Daimler rallied by 3.36% and 3.37% to lead the way. Continental and Volkswagen saw more modest gains of 0.78% and 2.64% respectively.

It was a particularly bullish day for the banks. Deutsche Bank and Commerzbank rallied by 5.39% and by 5.26% respectively.

Deutsche Lufthansa led the way, however, surging by 14.28% off the back of a 5.5% rally on Friday.

From the CAC, it was also a bullish day for the banks. Soc Gen rallied by 5.56%, while BNP Paribas and Credit Agricole saw more modest gains of 0.86% and 2.02% respectively.

The auto sector saw further gains. Peugeot and Renault rose by 0.84% and by 1.64% respectively.

Air France-KLM rallied by 8.51% as EU member states looked to open borders. Airbus SE rose by 1.15% on the day.