In This Article:
Economic Calendar:
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 4th consecutive day in the red for the European majors on Thursday, with the CAC40 sliding by 4.71% to lead the way down.
The DAX30 and EuroStoxx600 weren’t far behind, with losses of 4.47% and 4.10% respectively.
Economic data took a back seat through the early part of the day. It was FED Chair Powell’s press conference and economic projections that spooked the markets on Thursday.
Following gloomy projections from the World Bank and OPEC, the FED Chair and the FOMC economic projections delivered the markets with yet another dose of reality.
Concerns over a 2nd wave of the coronavirus added to the negative sentiment on the day. News from newly reopened U.S states of a jump in new cases caused the stir on the day.
The Stats
It was a quiet day on the Eurozone economic calendar on Thursday. French nonfarm payroll figures for the 1st quarter failed to move the dial ahead of the European open.
In the 1st quarter, nonfarm payrolls increased by 2.0%, following a 0.4% rise in the 4th quarter of last year. Economists had forecast a 2.3% slide.
From the U.S
The weekly jobless claims figures drew plenty of interest, following May’s unexpected rise in nonfarm payrolls.…
In the week ending 5th June, initial jobless claims increased by 1.542m, following a 1.877m rise in the week prior. While better than forecasts, it was still a sizeable jump.
Wholesale inflation figures for May had a muted impact, with the FED Chair’s doom and gloom having already delivered a blow to the majors.
The Market Movers
For the DAX: It was a particularly bearish day for the auto sector on Wednesday. Daimler tumbled by 10.10% to lead the way down, with Continental, and Volkswagen sliding by 8.15% and 8.17% respectively. BMW saw a relatively more modest 6.99% loss.
It was also another bearish day for the banks, with Deutsche Bank and Commerzbank sliding by 7.08% and by 7.67% respectively.
Deutsche Lufthansa was the worst performer on the day, however, tumbling by 11.66% off the back of a 5.79% fall on Wednesday.
From the CAC, it was yet another day in the deep red for the banks. Soc Gen slid by 9.37% to lead the way down. Credit Agricole and BNP Paribas saw more modest losses of 6.09% and 6.96% respectively.
Across the auto sector, it was also a bad day, with Peugeot and Renault tumbling by 10.02% and by 14.08% respectively.