European Equities: Futures see Red with U.S Monetary and Fiscal Policy in the Spotlight

In This Article:

Economic Calendar:

Thursday, 30th July

German GDP (QoQ) (Q2)

German GDP (YoY) (Q2)

German Unemployment Change (Jul)

German Unemployment Rate (Jul)

Eurozone Unemployment Rate (Jun)

German CPI (MoM) (Jul) Prelim

Friday, 31st July

French GDP (QoQ) (Q2)

German Retail Sales (MoM) (Jun)

French Consumer Spending (MoM) (Jun)

French CPI m/m (Jul) Prelim

French HICP m/m (Jul) Prelim

Spanish GDP (QoQ) (Q2)

Italian CPI (MoM) (Jul) Prelim

Eurozone CPI (YoY) (Jul) Prelim

Eurozone Core CPI y/y (Jul) Prelim

Eurozone GDP q/q (Q2) 1st Estimate

Eurozone GDP y/y (Q2) 1st Estimate

The Majors

It was another mixed day for the European majors on Tuesday. The EuroStoxx600 ended the day up by 0.42%, while the CAC40 and DAX30 fell by 0.22% and by 0.03% respectively.

As the markets continued to grapple with COVID-19 and geopolitics, the progress of the COVID-19 stimulus package also tested support.

Earnings delivered mixed results. While Peugeot reported profit, LVMH slumped in response to some quite dire results.

The Stats

It was a particularly quiet day on the Eurozone economic calendar. There were no material stats to provide the European majors with direction.

From the U.S

Late in the European session, July’s CB Consumer Confidence figures were in focus.

The CB Consumer Confidence Index fell from 98.3 to 92.6. Economists had forecast a decline to 94.5.

May house price figures had a muted impact on the majors later in the day.

The Market Movers

For the DAX: It was a bearish day for the auto sector on Tuesday. BMW, Continental, and Volkswagen saw losses of 0.60%, 0.22%, and 0.24% respectively. Daimler slid by 1.38%, however, reversing a trend-bucking 0.62% gain from Monday.

It was a mixed day for the banks. While Deutsche Bank fell by 0.44%, Commerzbank ended the day with a 0.51% gain.

From the CAC, it was a mixed day for the banks. Soc Gen and Credit Agricole rose by 0.25% and by 0.86% respectively. BNP Paribas bucked the trend with a 0.40% loss.

It was another mixed day for the French auto sector. Peugeot rose by 2.42% following better than expected earnings, while Renault fell by 1.55%.

Air France-KLM continued to struggle, falling by 0.77% following a 4.97% slide on Monday. Airbus SE found support, however, rallying by 3.12%.

LVMH was amongst the worst performers, falling by 4.07% in response to dire earnings results and a negative near-term outlook.

On the VIX Index

It was back into the green for the VIX on Tuesday, following 2 consecutive days in the red. Partially reversing 4.26% decline from Monday, the VIX rose by 2.83% to end the day at 25.44.