European Equities: Futures Point to the Red, with Capitol Hill and Stats in Focus

In This Article:

Economic Calendar:

Tuesday, 10th November

German ZEW Current Conditions (Nov)

German ZEW Economic Sentiment (Nov)

Eurozone ZEW Economic Sentiment (Nov)

Thursday, 12th November

German CPI (MoM) (Oct) Final

ECB Economic Bulletin

Eurozone Industrial Production (MoM) (Sep)

Friday, 13th November

ECB President Lagarde Speaks

French CPI (MoM) (Oct) Final

French HICP (MoM) (Oct) Final

Spanish CPI (YoY) (Oct) Final

Spanish HICP (YoY) (Oct) Final

Eurozone GDP (YoY) (Q3) 2nd Estimate

Eurozone Trade Balance (Sep)

The Majors

It was a particularly bullish day for the European majors on Monday. The CAC40 surged by 7.57% to lead the way, with the DAX30 and EuroStoxx600 rallying by 4.94% and by 3.98% respectively.

Economic data was on the lighter side, which failed to provide the majors with direction, leaving the markets in the hands of politics and COVID-19.

News from Pfizer of successful COVID-19 vaccine trials delivered the support to the majors at the start of the week.

Pfizer.inc reported a 90% efficacy rate in late-stage trials, which offset dire COVID-19 numbers recorded in the U.S and beyond.

The Stats

It was a relatively quiet day on the Eurozone economic calendar. Key stats included German trade figures for September.

In September, Germany’s trade surplus widened from €15.4bn to €17.8bn. Economists had forecasted a widening to €15.8bn.

According to Destatis,

  • Exports rose by 2.3% to €109.8bn, while imports fell by 0.1% to €89.0bn compared with the previous month.

  • Germany exported goods to the value of €59.1bn to EU member states, while importing goods to the value of €48.7bn.

  • Exports to euro area countries fell by 4.5% to €41.1bn, while German imports fell by 4.4% to €32.6bn.

  • Exports to EU countries not belonging to the EU fell by 0.4% to €18.0bn, with imports falling by 1.1% to €16.1bn.

  • With non-EU countries, exports fell by 4.4% to €50.7bn, with imports sliding by 5.4% to €40.3bn.

On the monetary policy front, ECB President Lagarde avoided monetary policy in a scheduled speech on Monday.

From the U.S

There were no material stats to provide the European majors with direction late in the day.

The Market Movers

For the DAX: It was a particularly bullish day for the auto sector on Monday. . Continental surged by 8.32% to lead the way. BMW and Volkswagen rallied by 5.49% and by 5.30%, with Daimler gaining a more modest 3.83%.

It was also a bullish day for the banks. Deutsche Bank rallied by 4.78%, with Commerzbank surging by 15.37%

From the CAC, it was a particularly bullish day for the banks. BNP Paribas and Credit Agricole surged by 17.98% and by 13.67% respectively. Soc Gen jumped by 18.41%, however, to lead the way.