European Equities: A Quiet Economic Calendar Leaves Oil and Central Bank Chatter in Focus

In This Article:

Economic Calendar

Tuesday, 12th October

German ZEW Current Conditions (Oct)

German ZEW Economic Sentiment (Oct)

ZEW Economic Sentiment (Oct)

Wednesday, 13th October

German CPI (MoM) (Sep) Final

Eurozone Industrial Production (MoM) (Aug)

Thursday, 14th October

Spanish CPI (YoY) (Sep) Final

Spanish HICP (YoY) (Sep) Final

Friday, 15th October

French CPI (MoM) (Sep) Final

French HICP (MoM) (Sep) Final

Italian CPI (MoM) (Sep) Final

Eurozone Trade Balance (Aug)

The Majors

It was a bearish end to the week for the European majors on Friday.

The CAC40 fell by 0.61%, with the DAX30 and the EuroStoxx600 seeing losses of 0.29% and 0.28% respectively.

While economic data from Germany disappointed once more, market concerns over inflation and weak U.S jobs data weighed most.

The Stats

The German economy was back in focus at the end of the week.

The German Economy

In August, Germany’s trade surplus narrowed from €17.7bn to €13.0bn. Economists had forecast a narrowing to €15.8bn.

According to Destatis,

  • German exports fell by 1.2%, while imports increased by 3.5% when compared with July 2021.

  • In August 2021, exports of goods increased by 14.4% to €104.4bn, year-on-year.

  • Imports increased by 18.1% to €93.8bn.

Trade with EU countries

  • German exports to EU member states increased 15.7%, while imports from EU member states rose by 11.2%.

  • To euro area countries, exports were up 16.9%, with imports from euro area countries rising by 13.5%.

Trade with Non-EU Countries

  • Exports of goods to outside of the EU increased by 13.1%, while imports jumped by 25.9%.

With other Countries

  • Exports to the UK slid by 15.1%, with imports from the UK down 7.9%.

To China, exports rose by 4.4%, however, with exports to the U.S jumping by 22.4%.

From the U.S

Labor market figures were the key stats of the day, with the numbers disappointing.

In September, nonfarm payrolls increased by just 194k, falling well short of a forecasted 500k rise.

The unemployment rate fell from 5.2% to 4.8%, with a fall in the participation rate from 61.7% to 61.6% contributing.

The Market Movers

For the DAX: It was a mixed day for the auto sector on Friday. Volkswagen bucked the trend, falling by 0.74%. Continental and Daimler rallied by 2.91% and by 2.34% respectively, however, to lead the way. BMW rose by a more modest 1.13%.

It was a bullish day for the banks. Deutsche Bank rose by 0.48%, with Commerzbank ending the day up by 1.07%.

From the CAC, it was a mixed day for the banks. BNP Paribas fell by 0.16%, while Credit Agricole and Soc Gen ended the day up by 0.30% and by 0.11% respectively.

It was a bullish day for the French auto sector, however. Stellantis NV rose by 0.62%, with Renault ending the day up by 2.33%.