Thursday, 3rd June
Spanish Services PMI (May)
Italian Services PMI (May)
French Services PMI (May) Final
German Services PMI (May) Final
Eurozone Markit Composite PMI (May) Final
Eurozone Services PMI (May) Final
Friday, 4th June
German IHS Markit Construction PMI (May)
Eurozone Retail Sales (MoM) (Apr)
ECB President Lagarde Speaks
It was another bullish day for the European majors on Wednesday.
The CAC40 rose by 0.49%, with the DAX30 and the EuroStoxx600 seeing gains of 0.23% and 0.22% respectively.
Disappointing economic data from Germany failed to pull the majors into the red mid-week. Market optimism, following Tuesday’s manufacturing PMIs and unemployment numbers from Germany and the Eurozone, continued to deliver support.
The upside was modest, however, ahead of a busy Thursday and Friday on the economic data front.
It was a quieter day on the economic data front. From the Eurozone, German retail sales figures were in focus.
In April, retail sales fell by 5.5%, month-on-month, partially reversing a 7.7% jump from March. Economists had forecast a more modest 2.0% decline.
According to Destatis,
- The decline in April was attributed to the federal emergency brake in the 2nd half of April and the Easter business in March.
- Compared with the same month a year earlier, retail sales were up by 4.4%, coming up short of a forecasted 10.1% increase. In March, retail sales had been up by 11.0%, year-on-year.
From the U.S
It was a quiet day on the economic calendar, with no major stats to provide the European markets with direction late in the session.
The Market Movers
For the DAX: It was a bullish day for the auto sector on Wednesday. Volkswagen rose by 1.93% to lead the way, with BMW and Continental ending the day up by 0.97% and by 0.90% respectively. Daimler saw a more modest 0.41% gain on the day.
It was a mixed day for the banks, however. Deutsche Bank slipped by 0.03%, while Commerzbank gained 1.75%.
From the CAC, it was a mixed day for the banks. BNP Paribas and Soc Gen rose by 0.51% and by 0.34% respectively, while Credit Agricole fell by 0.59%.
It was a bullish day for the French auto sector, however. Stellantis NV rose by 0.61%, with Renault ending the day up by 1.65%.
Air France-KLM rallied by 3.45%, with Airbus SE gaining 1.78%.
On the VIX Index
Following two consecutive days in the green, it was back into the red for the VIX on Wednesday.
Partially reversing a 6.80% fall from Tuesday, the VIX fell by 2.35% to end the day at 17.48.
The Dow rose by 0.07%, with the NASDAQ and the S&P500 both ending the day up by 0.14% respectively.
The Day Ahead
It’s a busy day ahead on the European economic data front.
Service sector PMIs for Italy and Spain are due out along with finalized PMI numbers from France, Germany, and the Eurozone.
Barring a marked revision to prelim figures expect Italy, Spain and the Eurozone’s PMIs to draw the greatest interest.
The markets will be looking for Italy’s services sector to return to growth at a minimum…
From the U.S, it’s also a busy day ahead on the economic data front.
Key stats include ADP nonfarm employment change figures, the weekly jobless claims, and market’s favored ISM non-manufacturing PMI.
Other stats include nonfarm productivity and unit labor cost and finalized Markit service PMI numbers. These should have a muted impact on the European majors, however.
Ahead of the European open, Caixin service sector PMI numbers from China will set the tone.
In the futures markets, at the time of writing, the Dow Mini was down by 2 points.
For a look at all of today’s economic events, check out our economic calendar.