In This Article:
Economic Calendar:
Wednesday, 5th May 2021
Spanish Services PMI (Apr)
Italian Services PMI (Apr)
French Services PMI (Apr) Final
German Services PMI (Apr) Final
Eurozone Markit Composite PMI (Apr) Final
Eurozone Services PMI (Apr) Final
Thursday, 6th May 2021
German Factory Orders (MoM) (Mar)
IHS Markit Construction PMI (Apr)
Eurozone Retail Sales (MoM) (Mar)
Friday, 7th May 2021
German Industrial Production (MoM) (Mar)
German Trade Balance (Mar)
ECB President Lagarde Speech
The Majors
It was a particularly bearish day for the European majors on Tuesday. The DAX30 slid by 2.49%, with the CAC40 and the EuroStoxx600 ending the day down by 0.89% and by 1.43% respectively.
With no material stats from the Eurozone to provide direction on the day, a tech sector sell-off weighed on the European majors. Following Monday’s pullback, the NASDAQ continued to fall back on Tuesday, dragging tech stocks in Europe into the red.
News of anticipated supply shortages in the auto sector weighed heavily on the DAX30 in particular, with the auto sector joining tech stocks in the deep red.
The Stats
It was a particularly quiet day on the economic calendar, with no material stats from the Eurozone to provide direction.
From the U.S
It was a relatively busy day, with factory orders and trade data for March in focus late in the European session.
Factory orders increased by 1.1%, following a 0.5% decline in February. Economists had forecast a 1.3% rise.
The trade deficit widened from $70.4bn to $74.4bn in March. Economists had forecast a widening to $74.50bn.
The Market Movers
For the DAX: It was a particularly bearish day for the auto sector on Tuesday. Daimler tumbled by 5.20%, with BMW and Volkswagen sliding by 3.08% and by 3.94% respectively. Continental saw a more modest 1.03% loss on the day.
It was another mixed day for the banks. Deutsche Bank slid by a further 2.49%, while Commerzbank ended the day up by 0.52%.
From the CAC, it was a bearish day for the banks. Soc Gen slid by 2.23%, with BNP Paribas and Credit Agricole falling by 0.77% and by 1.15% respectively.
It was also a bearish day for the French auto sector. Stellantis NV and Renault ended the day with losses of 0.52% and 2.02% respectively.
Air France-KLM fell by 1.19%, with Airbus SE sliding by 3.18%.
On the VIX Index
It was back into the green for the VIX on Tuesday, marking a 3rd rise in 4-sessions.
Reversing a 1.61% fall from Monday, the VIX rose by 6.39% to end the day at 19.48.
The NASDAQ and the S&P500 fell by 1.88% and by 0.67% respectively, while the Dow eked out a 0.06% gain.
The Day Ahead
It’s a busy day ahead on the European economic calendar. Key stats include service sector PMIs from Italy and Spain. Finalized numbers for Germany, France, and the Eurozone are also due out.