In This Article:
Economic Calendar
Friday, 2nd July
German Retail Sales (MoM) (May)
The Majors
It was a relatively bullish day for the European majors on Thursday.
The CAC49 led the way, rising by 0.71%, with the DAX30 and the EuroStoxx600 seeing gains of 0.47% and 0.62% respectively.
Market focus returned to economic data from the Eurozone and the U.S, supporting a partial recovery of Wednesday’s losses.
The upside was limited, however, in spite of a fresh record high Eurozone PMI and a weaker EUR.
Concerns over the rising number of new COVID-19 cases continued to limit the upside across the European majors.
The Stats
It was a busy economic calendar this morning. Following Tankan survey numbers from Japan and manufacturing PMI numbers from China, manufacturing PMI and unemployment figures from the Eurozone were in focus.
The Member States
Spain’s manufacturing PMI rose from 59.4 to 60.4, while Italy’s manufacturing PMI slipped from 62.3 to 62.2 in June.
Economists had forecast PMIs of 58.6 and 61.5 respectively.
For Germany, the manufacturing PMI increased from 64.4 to 65.1, which was down from a prelim 64.9.
The French manufacturing PMI fell from 59.4 to 59.0, which was up from June’s prelim 58.6.
The Eurozone
In June, the Eurozone’s manufacturing PMI increased from 63.1 to a record high 63.4, which was also up from a flash 63.1.
According to the June Survey,
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Production increased sharply, with jobs growth hitting a survey peak in June.
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Investment goods producers recorded the strongest growth, followed by intermediate goods producers.
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While consumer goods producers continued to lag, growth was the most marked since Jun-2020.
By country, the Netherlands led the way in spite of a 2-month low PMI of 68.8. By contrast, Greece sat at the bottom of the table despite a 254-month high PMI of 58.6.
Germany ranked 3rd, with a 2-month high PMI of 65.1, with Italy’s 2-month low PMI of 62.2 leaving Italy in 5th spot.
Eurozone Unemployment
In May, the Eurozone’s unemployment rate fell from 8.1% to 7.9%, which was in line with forecasts.
From the U.S
Jobless claims and manufacturing sector PMIs were in focus.
In the week ending 25th June, initial jobless claims fell from 415k to 364k, which was better than a forecasted 370k.
The ISM Manufacturing PMI slipped from 61.2 to 60.6, however. Economists had forecast a more modest decline to 61.0.
The Market Movers
For the DAX: It was a relatively bullish day for the auto sector on Thursday. BMW rose by 0.74%, with Continental and Daimler ending the day up by 0.58% and by 0.52% respectively. Volkswagen saw a more modest 0.45% gain on the day.