In This Article:
The Majors
It was another bullish week for the European majors in the week ending 20th November.
The CAC40 rallied by 2.15% to lead the way, with the DAX30 and EuroStoxx 600 gaining 0.46% and 1.15% respectively.
COVID-19 vaccine updates drove demand for riskier assets in the week. Both Moderna Inc. and Pfizer Inc. delivered phase 3 clinical trial results that impressed the markets. At the end of the week, Pfizer Inc. and BioNTech submitted a EUA to the FDA, which was also positive for the majors.
The numbers came off the back of Pfizer Inc.’s first set of results from the week prior.
From the U.S, there was also news that stimulus talks are set to resume that provided further support at the end of the week.
For the week, the upside was tempered, however, with a continued spike in new COVID-19 cases weighing.
Concerns over the possibility of further lockdown measures to curb the spread pinned the majors back late in the week.
The Stats
Finalized October inflation figures for Italy and the Eurozone provided little direction in the week.
The markets are expecting an ECB move next month, which muted the impact of the numbers.
At the end of the week, wholesale inflation figures from Germany also had a muted impact.
With the COVID-19 2nd wave hitting the Eurozone, the Eurozone’s consumer confidence figure did draw some attention, however.
The Flash Consumer Confidence Indicator fell from -15.5 to -17.6, which marginally better than a forecasted -17.7.
Impact on the majors was limited, with the markets expecting consumer confidence to be on the slide.
From the U.S
In the 1st half of the week, October retail sales and industrial production figures were in focus.
The stats were skewed to the negative, with retail sales disappointing at the turn of the quarter.
While industrial production figures were positive, consumer spending remains the key driver for the U.S economy. Continued failure to deliver on a COVID-19 stimulus package is likely to deliver weaker numbers ahead on the spending front.
In the 2nd half of the week, the Philly FED Manufacturing and weekly jobless claims figures also disappointed.
Initial jobless claims rose from 711k to 742k in the week ending 13th November. The Philly FED Manufacturing Index fell from 32.3 to 26.3.
Other stats in the week had a muted impact on the Dollar and broader market risk sentiment, however.
The Market Movers
From the DAX, it was another bullish week for the auto sector. Daimler rallied by 5.67%, with BMW and Continental gaining 4.43% and 3.28% respectively. Volkswagen saw a more modest 0.77% rise.