Growing Euro notes arrows over the flag of European Union.

European Equities: A Quiet Economic Calendar Leaves COVID-19 and Earnings in Focus

Economic Calendar

Tuesday, 13th July

German Inflation Rate YoY Final JUN

German Inflation Rate MoM Final JUN

French Inflation Rate YoY Final JUN

French Inflation Rate MoM Final JUN

Wednesday, 14th July

Spain Harmonized Inflation Rate YoY Final JUN

Spain Inflation Rate YoY Final JUN

Eurozone Industrial Production MoM MAY

Thursday, 15th July

Italy Inflation Rate MoM Final JUN

Friday, 16th July

Eurozone Balance of Trade MAY

Eurozone Inflation Rate Final JUN

The Majors

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

The CAC40 rallied by 2.07%, with the DAX30 and the EuroStoxx600 ending the day with gains of 1.73% and 1.34% respectively.

Following a string of disappointing stats from Germany in the week, a quiet day on the economic calendar delivered support.

The lack of stats allowed bargain hunters to jump back in following Thursday’s sell-off.

In spite of the rebound, the continued spread of the Delta variant and a more murky economic outlook remain downside risks to the majors.

With the 2nd quarter having come to an end, however, attention will be shifting to corporate earnings, which should be market risk positive.

The Stats

It was a particularly quiet day, with no material stats from the Eurozone.

From the U.S

It was also a quiet day on the U.S economic calendar. There were no majors stats from the U.S to spook the markets late in the European session.

The Market Movers

For the DAX: It was a bullish day for the auto sector on Friday. Volkswagen surged by 6.18%, with BMW and Daimler ending the day up by 3.42% and by 2.72% respectively. Continental rose by a more modest 1.21%.

It was also a bullish day for the banks. Deutsche Bank and Commerzbank saw gains of 4.03% and 2.13% respectively.

From the CAC, it was a bullish day for the banks. BNP Paribas and Credit Agricole rose by 2.44% and by 2.49% respectively, with Soc Gen gaining 3.60%.

It was also a bullish day for the French auto sector. Stellantis NV and Renault ended the day up by 2.81% and 2.34% respectively.

Air France-KLM bucked the trend, falling by 0.83%, while Airbus SE rallied by 3.43%.

On the VIX Index

It was back into the red for the VIX on Friday, marking a 5th day in the red from 7-sessions.

Partially reversing a 17.28% jump from Thursday, the VIX slid by 14.84% to end the day at 16.18.

The Dow rallied by 1.30%, with the NASDAQ and the S&P500 ending the day up 0.98% and by 1.13% respectively.

VIX 120721 Daily Chart

The Day Ahead

It’s a particularly quiet day ahead on the economic calendar. There are no material stats to provide the majors with direction through the early part of the European session.

From the U.S, there are also no material stats to consider later in the day.

The lack of stats will leave the markets to consider the latest updates on the Delta variant of the coronavirus.

Late in the session, expect direction to come from the U.S majors, however, as the markets prep for earnings season, which kicks off this week.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 2 points.

For a look at all of today’s economic events, check out our economic calendar.