Tuesday, 16th July
- Italian CPI (MoM) (Jun) Final
- German ZEW Current Conditions (Jul)
- German ZEW Economic Sentiment (Jul)
- Eurozone ZEW Economic Sentiment (Jul)
- Eurozone Trade Balance (May)
Wednesday, 17th July
- Eurozone Core CPI (YoY) (Jun) Final
- Eurozone CPI (YoY) (Jun) Final
- Eurozone CPI (MoM) (Jun) Final
Friday, 19th July
- German PPI (MoM) (Jun)
It was a mixed end to the week for the majors on Friday. The DAX ended the day in the red, falling by 0.07%, while the EuroStoxx600 and CAC40 gained 0.15% and 0.38% respectively.
For the week, the DAX was the worst performer, sliding by 1.95%. Both the EuroStoxx600 and CAC40 saw more modest losses of 0.84% and 0.37% respectively.
While the trio ended the week in the red, the DAX saw red for a 6th consecutive day on Friday, supporting the heavier losses for the week.
Economic data out of the Eurozone included finalized June inflation figures out of Spain and the Eurozone’s May industrial production numbers.
While the markets brushed aside the finalized inflation numbers, the Eurozone’s industrial production figures provided support.
According to Eurostat,
- Industrial production increased by 0.9% in May, month-on-month, reversing a 0.4% fall in April.
- Production of non-durable consumer goods and durable consumer goods rose by 2.7% and by 2.3% respectively. Also on the rise were the production of capital goods (+1.3%) and energy (+0.7%).
- Bucking the trend was the production of intermediate goods, which fell by 0.2%.
- By member state, Ireland and France recorded the largest increases in production, rising by 2.3% and by 2.1% respectively.
- Year-on-year, industrial production fell by 0.5%.
- By member state, Malta and Germany recorded the largest falls in production, with declines of 5.1% and 4.3% respectively.
- Ireland reported the largest increase, up by 8.2%.
Ahead of the production figures, China’s trade data for June tested risk sentiment, with both imports and exports in reverse in June.
With economic data out of the U.S limited to wholesale inflation figures, there was little from the U.S economic calendar to provide support.
The Market Movers
From the DAX, Deutsche Bank was amongst the front runners once more on Friday, rallying by 2.24%, with a UBS upgrade driving demand for the beleaguered bank. Commerzbank saw a more modest gain of just 0.23% on the day.
It was a better day for the auto sector as well. Continental gained 1.8% on Friday, with BMW rising by 0.84% and Volkswagen up by 0.81%. Daimler bucked the trend on the day, however, with a 1.13% loss. The loss came off the back of a profit warning to investors.
From the CAC, it was a mixed bag for the bank stocks. BNP Paribas fell by 0.09%, while Soc Gen and Credit Agricole rose by 1.09% and by 0.23% respectively. Renault found support on the day, rising by 0.95%.
The Day Ahead
It’s a quiet day ahead on the Eurozone’s economic calendar. With no material stats due out, China’s 2nd quarter GDP, retail sales, and industrial production figures will set the mood going into the session.
While the economy grew at the slowest pace in almost 3-decades, the stats were better than had been expected, providing some support.
From the U.S, NY Empire State manufacturing numbers will likely provide direction late in the day.
Outside of the numbers, expect any chatter on trade to also provide direction.
Ahead of the European open, the Asian markets were mixed at the time of writing. The Hang Seng and CSI300 were up by 0.07% and by 0.24% respectively. The Nikkei was up by 0.2%, while the ASX200 was down by 0.51%.
At the time of writing, the DAX futures was up by 29 points, while the Dow Mini was up by 24 points.