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European Equities: A Quiet Economic Calendar Leaves COVID-19 and Geopolitics in Focus

In This Article:

Economic Calendar: 

Tuesday, 23rd June

French Manufacturing PMI (Jun) Prelim

French Services PMI (Jun) Prelim

German Manufacturing PMI (Jun) Prelim

German Services PMI (Jun) Prelim

Eurozone Manufacturing PMI (Jun) Prelim

Eurozone Markit Composite PMI (Jun) Prelim

Eurozone Services PMI (Jun) Prelim

Wednesday, 24th June

German IFO Business Climate Index (Jun)

Thursday, 25th June

GfK German Consumer Climate (Jul)

The Majors

It was back into the green for the European majors on Friday, delivering a 3rd day in the green for the week ending 19th June.

The EuroStoxx600 rose by 0.56% to lead the way, with the CAC40 and DAX30 gaining 0.42% and 0.40% respectively.

Market concerns over a spike in new COVID-19 cases failed to spook the markets at the end of the week.

Hopes of progress to ease tensions between the U.S and China provide support as central banks continued to print money…

At the end of the week, news hit the Bloomberg wires of China agreeing to increase its purchase of soybeans, corn, and ethanol.

While the news of China and the U.S was a positive, WIRECARD’s fall from grace limited appetite on the day.

The Stats

It was a quiet day on the Eurozone economic calendar on Friday. German wholesale inflation figures for May were in focus that had a muted impact on the majors.

Factories saw deflationary pressures ease in May as demand picked up from April’s historic slump.

Germany’s producer price index fell by 0.4%, following a 0.7% slide in April.

From the U.S

From the U.S, there no material stats to provide direction later in the day.

The Market Movers

For the DAX: It was bearish end to the week for the auto sector. Continental and Volkswagen fell by 1.57% and by 1.97% respectively to lead the way down. BMW and Daimler saw modest losses of 1.14% and .0.57% respectively.

It was also a bearish day for the banks. Deutsche Bank and Commerzbank saw losses of 0.19% and 1.83% respectively.

Deutsche Lufthansa ended a run of 2 consecutive days in the red with a 1.41% gain on Friday. On Thursday, Deutsche Lufthansa had fallen by 2.60%.

The story of the day once more, however, was WIRECARD AG, which slid by 33.06%. Missing funds and the resignation of the CEO at the end of the week led to another tumble.

From the CAC, it was a bearish day for the banks on Friday. Credit Agricole slid by 2.06% to lead the way down. BNP Paribas and. Soc Gen saw more modest losses of 1.44% and 1.68% respectively.

The French auto sector also struggled. Peugeot slid by 2.30%, with Renault falling by 1.88%.

Air France-KLM saw more red, falling by 0.33%, while Airbus SE partially recovered from a 1.98% loss with a 1.53% gain.