In This Article:
The Majors
It was another bullish week for the European majors in the week ending 12th March.
The CAC40 and the DAX30 rallied by 4.56% and by 4.18% respectively, with the EuroStoxx600 gaining 3.56%.
Impressive trade data from China set the tone going into the week.
Positive data from the U.S, the ECB, and the passing of the $1.9 trillion relief package through the U.S Congress also delivered support.
The Stats
It was a relatively busy week on the economic data front.
Key stats included industrial production and trade figures from Germany and industrial production figures for the Eurozone.
It was a mixed bag on the data front.
German industrial production slid by 2.5% in January, reversing a 1.9% rise from December.
A widening in Germany’s trade surplus from €16.4bn to €22.2bn impressed, however, with exports to China on the rise.
For the Eurozone, industrial production rose by 0.8% in January, following a revised 0.1% decline in December.
Other stats included finalized 4th quarter GDP numbers for the Eurozone and finalized inflation figures for Germany and Spain. These stats had a muted impact on the majors, however.
On the monetary policy front, the ECB provided the European majors with support on Thursday.
While standing pat on monetary policy, the ECB vowed to ramp up bond purchases to combat the recent rise in borrowing costs.
From the U.S
Inflation, jobless claims, and consumer sentiment figures were in focus.
In February, the annual rate of core inflation softened from 1.4% to 1.3%, with core consumer prices rising by less than expected in the month of February.
Jobless claim figures were also positive for riskier assets. In the week ending 5th March, initial jobless claims fell back from 754k to 712k.
At the end of the week, the Michigan Consumer Sentiment Index rose from 76.8 to 83.0 for March, according to prelim figures.
Coupled with Biden’s signing of the relief package, the stats were also positive for riskier assets at the end of the week.
Other stats included Jolt’s job openings for January and wholesale inflation figures for February. These stats had a muted impact on the majors, however.
The Market Movers
From the DAX, it was a mixed week for the auto sector. Continental and Volkswagen slid by 6.87% and by 2.25% respectively. BMW and Daimler ended the week with gains of 2.45% and 0.38% respectively, however.
It was also a mixed week for the banking sector. Deutsche Bank fell by 0.47%, while Commerzbank gained 0.18%.
From the CAC, it was yet another bullish week for the banks. Credit Agricole rose by 0.82%, with BNP Paribas and Soc Gen gaining 2.89% and 2.02% respectively.