Yahoo Finance

Economic Calendar:

Monday, 24th June

• German IFO Current Conditions / German IFO Expectations / German IFO Business Climate

Wednesday, 26^th June

• 1. GfK German Consumer Climate (Jul)
     

     Thursday, 27^th June

• Spanish HICP (YoY) (Jun)

• Eurozone Business Confidence

• German CPI (MoM) (Jun) Prelim

Friday, 28^th June

• French Consumer Spending (MoM) (May)

• French CPI (MoM) (June) Prelim

• French HICP (MoM) (June) Prelim

• Spanish GDP (QoQ) (Q1)

• Italian CPI (MoM) (Jun) Prelim

• Eurozone Core CPI (YoY) (Jun) Prelim

• Eurozone CPI (YoY) (Jun) Prelim

The Majors

The European majors ended the week on the back foot. The DAX30 and CAC40 both fell by 0.13%, while the EuroStoxx600 fell by 0.36%.

It was a bullish week, however. The CAC40 led the way, rallying by 2.99% with the DAX30 ending the week up by 2.01%. The EuroStoxx600 trailed with a 1.57% gain.

News of a planned meeting between Trump and Xi at the coming week’s G20 Summit provided support through the week.

Adding to the upside was a dovish FED and some ECB President jawboning mid-week. 7 FOMC members projected 2 rate cuts for the year. ECB President Draghi also assured the markets of ECB support should inflationary pressures fail to build.

Rising tensions between the U.S and Iran weighed on risk appetite at the end of the week, however. News of Trump pulling out from a military strike on Iran at the 11^th hour raised the prospects of military action in the near-term.

A lack of support from allies left the U.S President isolated, with few world leaders wanting to be embroiled in a conflict with Iran.

Trump has now promised tougher sanctions to bring the country to its knees. It remains to be seen how Iran responds…

The Stats

Economic data out of the Eurozone was on the heavier side on Friday.

June prelim private sector PMI numbers provided some direction in the early part of the day.

The numbers were skewed to the positive side on Friday.

The Eurozone’s manufacturing PMI rose from 47.7 to 47.8, with the services sector rising from 55.4 to 55.6. The upward trends led to the composite rising from 51.8 to 52.1. According to the latest Eurozone Markit Composite,

• While growth remained weak, the prelim PMI hit a 7-month high in June.

• The service sector PMI activity index hit a 7-month high, while the manufacturing PMI output index hit a 2-month low.

• In spite of the 2-month low, the manufacturing PMI hit a 2-month high.

• While private sector activity picked up, optimism fell to its lowest level since late-2014.

• Export orders for both goods and services fell to the weakest level since January.

• On the positive labor market conditions improved.