European Equities: Trump’s Next Move, COVID-19, and Brexit in Focus

In This Article:

Economic Calendar:

Monday, 9th November

German Trade Balance (Sep)

ECB President Lagarde Speaks

Tuesday, 10th November

German ZEW Current Conditions (Nov)

German ZEW Economic Sentiment (Nov)

Eurozone ZEW Economic Sentiment (Nov)

Thursday, 12th November

German CPI (MoM) (Oct) Final

ECB Economic Bulletin

Eurozone Industrial Production (MoM) (Sep)

Friday, 13th November

ECB President Lagarde Speaks

French CPI (MoM) (Oct) Final

French HICP (MoM) (Oct) Final

Spanish CPI (YoY) (Oct) Final

Spanish HICP (YoY) (Oct) Final

Eurozone GDP (YoY) (Q3) 2nd Estimate

Eurozone Trade Balance (Sep)

The Majors

It was a bearish end to a bullish week for the European majors, with the DAX30 falling by 0.70% to lead the way down. Losses were more modest for the CAC40 and the EuroStoxx600, which fell by 0.46% and by 0.20% respectively.

Economic data continued to take a back seat once more, with the markets responding to the FED and U.S Presidential Election updates.

While Joe Biden was leading the election race, some degree of uncertainty over the outcome remained.

As the vote count in the U.S continued, a return to focus on the 2nd wave of the COVID-19 pandemic also weighed.

The Stats

It was a relatively quiet day on the Eurozone economic calendar. Key stats included German industrial production figures.

In September, industrial production rose by 1.6%, following a 0.5% rise in August. Economists had forecast a 2.7% rise.

According to Destatis,

  • Production in industry, excluding energy and construction, was up by 2.0%.

  • Within industry, the production of intermediate goods rose by 1.4%, with the production of consumer goods rising by 3.0%.

  • The production of capital goods increased by 2.2%.

  • Outside industry, energy production was down by 2.5%, while production in construction rose by 1.5%.

  • Production in the automotive industry jumped by 10.0%, reversing a 10.3% slide in August.

  • Compared with February 2020, the month prior to COVID-19 restrictions, production was down by 8.4%

From the U.S

Economic data was also on the busier side. Key stats included October nonfarm payrolls and unemployment figures.

In October, the U.S added 638k nonfarm payrolls in October, following a 672k increase in September.

With the pickup in payrolls, the unemployment rate fell from 7.9% to 6.9%. Marginally improving labor market conditions saw more people look for work. As a result, the participation rate rose from 61.4% to 61.7%.

The Market Movers

For the DAX: It was a bearish day for the auto sector on Friday. BMW and Daimler fell by 1.06% and by 1.59% respectively to lead the way down. Continental and Volkswagen saw more modest losses of 0.70% and of 0.90% respectively.