European Equities: German Business Confidence in Focus
In This Article:
Economic Calendar:
Monday, 22nd February
German Ifo Business Climate Index (Feb)
Tuesday, 23rd February
Eurozone CPI (YoY) (Jan) Final
Wednesday, 24th February
German GDP (YoY) (Q4) 2nd Estimate
German GDP (QoQ) (Q4) 2nd Estimate
Thursday, 25th February
GfK German Consumer Climate (Mar)
Friday, 26th February
French Consumer Spending (MoM) (Jan)
French GDP (QoQ) (Q4) 2nd Estimate
Spanish HICP (YoY) (Feb) Prelim
Spanish CPI (YoY) (Feb) Prelim
The Majors
It was a relatively bullish end to the week for the European majors on Friday. The CAC40 and DAX30 rose by 0.79% and by 0.77% respectively, with the EuroStoxx600 rising by 0.53%.
Prelim Manufacturing PMI for February gave the European majors a boost on Friday.
Corporate earnings added to the upside, supporting the market’s optimistic outlook towards the economic recovery.
The Stats
It was a busy day on the economic calendar on Friday. Prelim private sector PMI numbers for France, Germany, and the Eurozone were in focus.
In February, the French Manufacturing PMI jumped from 51.6 to a 3-year high 55.0. Economists had forecast a decline to 51.4.
The services PMI fell from 47.3 to a 3-month low 43.6, leading to a fall in the French Composite PMI from 47.7 to a 3-month low 45.2.
Germany’s manufacturing sector activity picked up in February, with the prelim Manufacturing PMI rising from 57.1 to a 36-month high 60.6. Economists had forecasted a fall to 56.5.
Service sector troubles continued, however, with the services PMI falling from 46.7 to a 9-month low 45,9.
As a result of the jump in manufacturing sector PMI, the composite PMI increased from 50.8 to a 2-month high 51.3.
For the Eurozone, the manufacturing PMI increased from 54.8 to 57.7, while the services PMI fell from 45.4 to 44.7.
The Eurozone’s composite PMI increased from 47.8 to 48.1, supported by the pickup in manufacturing sector activity.
From the U.S
Key stats also included prelim private sector PMI numbers for February. It was also a mixed set of numbers from the U.S.
In February, the all-important services PMI increased from 58.3 to 58.9, while the manufacturing PMI slipped from 59.2 to 58.5. Supported by the services sector, the composite PMI increased from 58.7 to 58.8 in the month.
The Market Movers
For the DAX: It was another mixed day for the auto sector on Friday. BMW and Volkswagen rose by 0.52% and by 1.57% respectively, while and Continental and Daimler fell 1.52% and by 0.15% respectively.
It was a bullish day for the banks, however. Deutsche Bank and Commerzbank rallied by 3.78% and by 3.18% respectively.
From the CAC, it was a bullish day for the banks. BNP Paribas and Credit Agricole rose by 2.66% and by 2.63% respectively, with Soc Gen rallying by 3.78%.