In This Article:
Economic Calendar:
Monday, 23rd September
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French Manufacturing PMI (Sep) Prelim
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French Services PMI (Sep) Prelim
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German Manufacturing PMI (Sep) Prelim
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German Services PMI (Sep) Prelim
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Eurozone Manufacturing PMI (Sep) Prelim
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Eurozone Markit Composite PMI (Sep) Prelim
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Eurozone Services PMI (Sep) Prelim
Tuesday, 24th September
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German Ifo Business Climate Index (Sep)
Thursday, 26th September
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GfK German Consumer Climate (Oct)
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ECB Economic Bulletin
Friday, 27th September
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French Consumer Spending (MoM) (Aug)
The Majors
It was a positive end to the week for the European majors. The CAC40 and EuroStoxx600 led the way, with gains of 0.56% and 0.29% respectively., while the DAX30 rose by just 0.08%.
A modest gain on Friday left the DAX30 flat for the week, while the CAC40 and EuroStoxx600 rose by 0.62% and by 0.30% respectively.
With the majors heading into the last week of the quarter, it’s been a bullish month of September. The DAX30 leads the way, up by 4.43%, with the CAC40 and EuroStoxx600 not far behind with gains of 3.84% and 3.55% respectively.
Monetary policy support and easing geopolitical risk provided the upside, which comes in spite of some disappointing economic data in recent months. Expectations are that monetary policy support would avert an economic meltdown.
On Friday, the European majors managed to avoid a sell-off, with news of China canceling U.S farm visits coming after the European close.
Through the early part of the day on Friday, the PBoC failed to fuel a rally. While cutting the Loan Prime Rate from 4.25% to 4.20%, it was less than an expected cut to 4.15%.
The Stats
It was a quiet day on the Eurozone economic calendar on Friday. Economic data was limited to August wholesale inflation figures out of Germany and Eurozone consumer confidence numbers.
From Germany, the Producer Price Index fell by 0.5% in August, reversing a 0.1% rise in July. Economists had forecast for a 0.2% fall.
From the Eurozone, consumer confidence saw a slight improvement, with the prelim consumer confidence index rising by -7.1 to -6.5%. Economists had forecast a rise to -7.0.
According to the EU Commission Survey,
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The DG ECFIN flash estimate of the consumer confidence indicate continued to hold well above the long-run average of -10.7.
There were no material stats out of the U.S to influence the European majors on the day.
The Market Movers
From the DAX, it was another mixed day for the auto sector on Friday. Volkswagen and BMW made gains of 0.53% and 0.36% respectively. Continental led the way down, with a 2.9% slide, while Daimler slipped by just 0.07%.