Tuesday, 8th June
German Industrial Production (MoM) (Apr)
German ZEW Current Conditions (Jun)
German ZEW Economic Sentiment (Jun)
Eurozone GDP (QoQ) (Q1) Final
Eurozone GDP (YoY) (Q1) Final
Eurozone ZEW Economic Sentiment (Jun)
Wednesday, 9th June
German Trade Balance (Apr)
Thursday, 10th June
French Non-Farm Payrolls (QoQ) (Q1)
ECB Interest Rate Decision / Press Conference
Friday, 11th June
Spanish CPI (YoY) (May) Final
Spanish HICP (YoY) (May) Final
It was a mixed start to the week for the European majors on Monday.
The DAX slipped by 0.10%, while the CAC40 and the EuroStoxx600 rose by 0.43% and by 0.22% respectively.
Economic data from Germany and China disappointed, ultimately weighing on the DAX and pinning back the CAC40 and EuroStoxx600.
In May, China’s U.S Dollar trade surplus widened from $42.86bn to $45.43bn versus a forecasted widening to $50.50bn. Another sizeable jump in imports driven by strong demand impressed, pointing to strong domestic demand. Imports surged by a further 51.1% in May, following a 43.1% rise in April. Exports were up by 27.9% year-on-year, however, coming up well short of a forecasted 32.1% increase. In April, exports had risen by 32.3%.
It was another relatively quiet day on the economic data front. German factory orders for April were in focus.
In April, factory orders slipped by 0.2% following a 3.9% jump in March. Economists had forecast a 1.0% rise.
According to Destatis,
- Domestic orders declined by 4.3%, while foreign orders rose by 2.7% month-on-month.
- Intermediate goods orders fell by 1.0%, while capital goods orders rose by a modest 0.2%.
- The manufacturers of consumer goods reported a 1.4% increase, however.
- On the same month a year earlier, orders were up 78.9%.
- When compared with February 2020, which was the month prior to COVID-19 restrictions were imposed, orders were 9.9% higher.
From the U.S
It was a particularly quiet day on the economic calendar.
There were no material stats to provide the European majors with direction later in the day.
The Market Movers
For the DAX: It was a mixed day for the auto sector on Monday. Volkswagen fell by 0.44% to buck the trend. Continental rallied by 2.64% to lead the way, however, with BMW and Daimler ending the day up by 1.18% and by 0.59% respectively.
It was also a mixed day for the banks. Deutsche Bank slipped by 0.27%, while Commerzbank rose by 0.44%.
From the CAC, it was a bullish day for the banks. Credit Agricole rose by 0.99%. BNP Paribas and Soc Gen both ended the day up by 0.81%.
It was a bullish day for the French auto sector however. Stellantis NV and Renault saw gains of 1.10% and 0.97% respectively.
Air France-KLM found much-needed support, rising by 0.24%, with Airbus SE gaining 1.27%.
On the VIX Index
Giving up gains from earlier in the day, the VIX ended Monday flat.
Following an 8.98% fall from Friday, the VIX fell back from a day high 17.35 to end the day at 16.42.
The NASDAQ rose by 0.49%, while the Dow and the S&P500 ended the day down by 0.36% and by 0.08% respectively.
The Day Ahead
It’s a busier day ahead on the European economic data front.
German industrial production figures for April will provide the European majors with direction early in the session.
ZEW Economic Sentiment figures for Germany and the Eurozone will also influence later in the day.
Barring revision to 2nd estimates, however, finalized 1st quarter GDP numbers for the Eurozone should have a muted impact on the day.
From the U.S, JOLT’s job openings will also draw attention later in the day following last week’s NFP numbers.
In the futures markets, at the time of writing, the Dow Mini was down by 7 points.
For a look at all of today’s economic events, check out our economic calendar.