In This Article:
Economic Calendar:
Monday, 21st September
ECB President Lagarde Speaks
Tuesday, 22nd September
Eurozone Flash Consumer Confidence
Wednesday, 23rd September
GfK German Consumer Climate (Oct)
Spanish GDP (QoQ) (Q2)
French Manufacturing PMI (Sep) Prelim
French Services PMI (Sep) Prelim
German Manufacturing PMI (Sep) Prelim
German Services PMI (Sep) Prelim
Eurozone Manufacturing PMI (Sep) Prelim
Eurozone Markit Composite PMI (Sep) Prelim
Eurozone Services PMI (Sep) Prelim
Thursday, 24th September
German IFO Business Climate Index (Sep)
The Majors
It was a bearish end to the week for the European majors on Friday. The CAC40 slid by 1.22%, with the DAX30 and EuroStoxx600 ending the day with losses of 0.70% and 0.66% respectively.
A fresh spike in new COVID-19 cases across EU member states weighed on the European majors on the day.
Ahead of the European session, the WHO had warned of a “very serious situation” developing in Europe. In a bid to revive consumption and tourism, governments have been active in reopening the respective economies.
With a reliance on consumption to deliver an economic recovery, the latest spikes raise the chances of fresh lockdown measures.
Adding further pressures on the majors at the end of the week were Brexit and U.S – China tensions.
The Stats
It was yet another quiet day on the Eurozone economic calendar. Key stats included August wholesale inflation figures from Germany.
Germany’s producer price index stalled in August, after having risen by 0.20% in July. Whilst beating forecasts of a 0.1% decline, market jitters over deflationary pressures tested the majors going into the European open.
With stats on the lighter side, there was little to distract the markets from the latest U.S-China spat, Brexit, and COVID-19, however.
From the U.S
Key stats included prelim September consumer sentiment and expectations figures.
While both stats were skewed to the positive, both indicators remained well below pre-pandemic levels.
In September, the Michigan Consumer Sentiment Index rose from 74.1 to 78.9, according to prelim figures. While coming in ahead of a forecasted 75.0, the indicator had stood at 101.0 for January.
The Market Movers
For the DAX: It was a bearish day for the auto sector on Friday. Continental and Volkswagen slid by 3.97% and by 3.52% respectively. BMW and Daimler saw more modest losses of 1.72% and 1.91% respectively.
It was also a bearish day for the banks. Deutsche Bank and Commerzbank fell by 1.38% and by 3.11% respectively.
From the CAC, it was a bearish day for the banks. Credit Agricole and Soc Gen fell by 3.16% and by 3.05% respectively. BNP Paribas ended the day down by 2.34%.