In This Article:
Economic Calendar
Wednesday’ 26th January
France Jobseekers Total
Thursday, 27th January
GfK German Consumer Climate (Feb)
Friday, 28th January
French Consumer Spending (MoM) (Dec)
French GDP (QoQ) (Q4)
Spanish GDP (QoQ) (Q4)
German GDP (QoQ) (Q4)
German GDP (YoY) (Q4)
The Majors
It was a relatively bullish day for the European majors on Tuesday. The DAX rose by 0.75%, with the CAC40 and the EuroStoxx600 ending the day up by 0.74% and 0.71% respectively.
Upbeat business sentiment figures from Germany provided support early in the European session. Following a late U.S market rebound on Monday, dip buyers provided support ahead of Wednesday’s FED policy decision.
With uncertainty over what lies ahead on the policy front, however, and with the U.S equity markets in the red, the gains were modest.
The Stats
It was a relatively quiet day on the Eurozone economic calendar. German business sentiment figures were on focus early in the European session.
In January, Germany’s Ifo Business Climate Index climbed from 94.8 to 95.7 Economists had forecast a decline to 94.7. The Business Expectations Index rose from 92.7 to 95.2, while the Current Assessment Index slipped from 96.9 to 96.1.
According to the January survey,
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In manufacturing, the index saw a sharp increase. Companies were both more satisfied with the current business and also more optimistic about the months ahead.
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Service sector firms also saw a pickup in business sentiment. While firms were no longer pessimistic, service providers were less satisfied with their current situation.
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In trade, the business climate also improved. Expectations improved noticeably, while sentiment towards the current situation worsened.
From the U.S
Consumer confidence waned in January. The CB Consumer Confidence Index slipped from 115.2 to 113.8. Economists had forecast a decline to 111.8.
According to the January survey,
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The Present Situation Index rose from 144.8 to 148.2, while the Expectations Index slipped from 95.4 to 90.8.
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While the Expectations Index was weaker, the proportion of consumers planning to purchase homes, automobiles, and major appliances over the next 6-months were on the rise.
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Concerns about inflation declined for a 2nd consecutive month, while remaining elevated.
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By contrast, concerns about the pandemic increased as a result of the Omicron breakout.
The Market Movers
For the DAX: It was a bullish day for the auto sector on Tuesday. Volkswagen rose by 0.99%, with Daimler gaining 0.79%. BMW and Continental ended the day up by 0.66% and by 0.64% respectively.
It was also a bullish day for the banks. Deutsche Bank rose by 2.92%, with Commerzbank rallying by 4.27%.