Cac 40 indice in downtrend mode indicates global economy enter recession

European Equities: Futures Point Northwards ahead of Private Sector PMIs

Economic Calendar

Monday, 3rd January

Spanish Manufacturing PMI (Dec)

Italian Manufacturing PMI (Dec)

French Manufacturing PMI (Dec) Final

German Manufacturing PMI (Dec) Final

Eurozone Manufacturing PMI (Dec) Final

Tuesday, 4th January

German Retail Sales (MoM) (Nov)

French CPI m/m (Dec) Prelim

French HICP m/m (Dec) Prelim

German Unemployment Change (Dec)

German Unemployment Rate (Dec)

Wednesday, 5th January

Spanish Services PMI (Dec)

Italian Services PMI (Dec)

French Services PMI (Dec) Final

German Services PMI (Dec) Final

Eurozone Markit Composite PMI (Dec) Final

Eurozone Services PMI (Dec) Final

Thursday, 6th January

German Factory Orders (MoM) (Nov)

IHS Markit Construction PMI (Dec)

German CPI (MoM) (Dec)

Friday, 7th January

German Industrial Production (MoM) (Nov)

German Trade Balance (Nov)

French Consumer Spending (MoM) (Nov)

Eurozone CPI (YoY) (Dec) Prelim

Eurozone Retail Sales (MoM) (Nov)

The Majors

It was a bearish end to the year for the European majors, with the CAC40 and EuroStoxx600 falling by 0.28% and by 0.04% respectively. Germany’s DAX30 was closed for the holidays.

There were no major stats from the Eurozone or the U.S to influence the majors on the day. Economic data from China failed to impress despite better-than-expected figures.

In December, China’s NBS Manufacturing PMI increased from 50.1 to 50.3 versus a forecasted 50.0. The NBS Non-Manufacturing PMI rose from 52.3 to 52.7.

While continued news reports of fewer COVID-10 hospitalizations were market positive, the upward trend in new cases weighed on the majors.

The Stats

There were no major stats from the Eurozone.

From the U.S

There were also no major stats from the U.S to influence late in the European session.

The Market Movers

From the CAC, it was a mixed day for the banks. BNP Paribas rose by 0.16%, while Credit Agricole and Soc Gen ended the day down by 0.43% and by 0.12% respectively.

The French auto sector also had a mixed session. Stellantis NV fell by 0.10%, while Renault rallied by 1.48%.

Air France-KLM took yet another hit, falling by 0.13%, with Airbus SE ending the day down by 0.28%.

On the VIX Index

It was back into the red for the VIX on Friday, marking a 7th loss in 8-sessions.

Partially reversing a 2.24% rise from Thursday, the VIX slipped by 0.63% to end the day at 17.22.

The NASDAQ fell by 0.61%, with the Dow and the S&P500 declining by 0.16% and by 0.26% respectively.

VIX 030122 Daily Chart

The Day Ahead

It’s a particularly busy day ahead on the Eurozone’s economic calendar. Manufacturing sector PMIs for Italy and Spain will be in focus. Finalized manufacturing PMIs for France, Germany, and the Eurozone are also due out. Barring revisions from prelims, however, expect Italy and the Eurozone’s PMIs to be key.

From the U.S, December’s finalized Markit Manufacturing PMI will also be in focus late in the European session. Barring a marked upward revision, however, we don’t expect too much influence from the finalized numbers.

Away from the economic calendar, COVID-19 news will need continued monitoring, however.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 124 points with the DAX up 24 points.

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