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European Equities: Private Sector PMIs in Focus

Economic Calendar:

Monday, 21st November

French Manufacturing PMI (Nov) Prelim

French Services PMI (Nov) Prelim

German Manufacturing PMI (Nov) Prelim

German Services PMI (Nov) Prelim

Eurozone Manufacturing PMI (Nov) Prelim

Eurozone Markit Composite PMI (Nov) Prelim

Eurozone Services PMI (Nov) Prelim

Tuesday, 22nd November

German GDP (Q3) Final

German IFO Business Climate Index (Nov)

ECB President Lagarde Speaks

Wednesday, 23rd November

ECB Financial Stability Review

France Jobseekers Total

Thursday, 24th November

GfK German Consumer Climate (Dec)

ECB Publishes Account of Monetary Policy Meeting  

Friday, 25th November

French Consumer Spending (MoM) (Oct)

French CPI (MoM) (Nov) Prelim

French GDP (QoQ) (Q3) Final

French HICP (MoM) (Nov) Prelim

Eurozone Consumer Confidence Final

The Majors

It was a bullish end to a bullish week for the European majors on Friday. The DAX30 and CAC40 both rose by 0.39%, with the EuroStoxx600 gaining 0.52%.

The upside at the end of the week came as the markets continued to look towards a COVID-19 vaccine to end the pandemic.

Gains were limited, however, with the latest containment measures across the EU and the U.S to deliver a heavy blow to the respective economies.

The Stats

It was a relatively quiet day on the Eurozone economic calendar. German wholesale inflation and Eurozone consumer confidence figures were in focus on the day.

Wholesale sale inflation figures from Germany were in line with forecasts. The producer price index rose by just 0.1% in October, following a 0.4% increase in September.

From the Eurozone, consumer confidence deteriorated amidst the 2nd wave of the COVID-19 pandemic. The Eurozone’s consumer confidence indicator slipped from -15.5 to -17.6 for November. Economists had forecast a decline to -17.7.

From the U.S

There were no material stats to provide the majors with direction late in the session.

The Market Movers

For the DAX: It was another mixed day for the auto sector on Friday. Daimler rose by 0.43% to buck the trend on the day. Continental and Volkswagen both fell by 0.68%, with BMW ending the day down by 0.47%.

It was also a mixed day for the banks. Deutsche Bank fell by 0.20%, while Commerzbank rose by 0.67%.

From the CAC, it was also a mixed day for the banks. BNP Paribas and Credit Agricole rose by 0.36% and by 0.86% respectively. Soc Gen bucked the trend, however, falling by 0.14%

It was a bearish day for the French auto sector. Peugeot and Renault fell by 0.89% and by 0.95% respectively.

Air France-KLM eked out a 0.02% gain, while Airbus SE declined by 0.77%.

On the VIX Index

It was back into the green for the VIX on Friday. Partially reversing a 3.06% fall from Thursday, the VIX rose by 2.55% to end the day at 23.70.

A late pullback across the U.S equity markets delivered the upside for the VIX on the day.

Disagreements between the U.S Treasury and the FED on the use of emergency funds weighed on risk appetite late in the day.

On Friday, the Dow and S&P500 fell by 0.75% and by 0.68% respectively, with the NASDAQ ended the day down by 0.42%.

The Day Ahead

It’s a particularly busy day ahead on the Eurozone economic calendar. November’s prelim private sector PMI numbers for France, Germany, and the Eurozone are due out later today.

Expect sensitivity to the numbers as the markets look to get a sense of what damage the 2nd wave is having on the economy.

Service sector activity is likely to see a more material impact as a result of the reintroduced containment measures.

From the U.S, November’s prelim private sector PMIs will also influence late in the session.

Away from the economic calendar, COVID-19 news updates and any chatter from Capitol Hill will provide direction.

The Futures

In the futures markets, at the time of writing, the Dow was down by a modest 44 points.

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