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European Equities: Italian Industrial Production Figures in Focus

Economic Calendar

Thursday, 22nd July

Eurozone Business Confidence

ECB Interest Rate Decision

ECB Press Conference

Eurozone Consumer Confidence Flash

Friday, 23rd July

French Markit Manufacturing PMI Flash

French Markit Services PMI Flash

German Markit Services PMI Flash

German Markit Manufacturing PMI Flash

Eurozone Markit Services PMI Flash

Eurozone Markit Manufacturing PMI Flash

The Majors

It was relatively bullish day for the majors on Tuesday.

The CAC40 rose by 0.81%, with the DAX30 and the EuroStoxx600 ending the day up by 0.55 and by 0.52% respectively.

A quiet day on the economic calendar allowed investors to buy the dip following Monday’s rout.

The upside was modest, however, with concerns over the economic outlook pegging the majors back on the day.

The Stats

Wholesale inflation figures for Germany were in focus going into the European open.

In June, Germany’s annual wholesale rate of inflation accelerated from 7.2% to 8.5%. Economists had forecast a pick up to 8.3%.

Month-on-month, the producer price index rose by 1.3% following a 1.5% increase in May. Economists had forecast a 1.0% rise.

From the U.S

Housing sector figures for June were in focus that had a muted impact on the European majors.

In June, building permits fell by 5.1% to 1.598m, while housing starts rose by 6.3% to 1.643m.

Housing starts had risen by 2.1% in May, with building permits having fallen by 2.9%.

The Market Movers

For the DAX: It was a bullish day for the auto sector on Tuesday. Volkswagen and Daimler rose by 1.80% and by 1.52% respectively. BMW and Continental saw more modest gains of 1.15% and by 1.21% respectively.

It was also a bullish day for the banks. Deutsche Bank and Commerzbank ended the day up by 1.63% and by 1.07% respectively.

From the CAC, it was a bullish day for the banks. BNP Paribas rose by 1.89%, with Soc Gen and Credit Agricole gaining 1.43% and 1.50% respectively.

It was also a bullish day for the French auto sector. Stellantis NV and Renault ended the day up by 0.25% and by 0.80% respectively.

Air France-KLM rose by a modest 0.34%, with Airbus SE rallying by 2.34%.

On the VIX Index

It was back into the red for the VIX on Tuesday, ending a run of 3 consecutive days in the green.

Partially reversing a 21.95% jump from Monday, the VIX fell by 12.31% to end the day at 19.73.

The Dow rose by 1.62%, with the NASDAQ and the S&P500 ending the day up by 1.57% and by 1.52% respectively.

VIX 210721 Daily Chart

The Day Ahead

It’s another quiet day ahead on the economic calendar, with no major stats due out of the Eurozone.

The lack of stats will give industrial production figures from Italy greater influence early in the European session.

From the U.S, there are no major stats to provide direction, however, leaving the majors to take direction from the U.S markets later in the session.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 51 points.

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