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European Equities: With no Major Stats from the Eurozone it is all Eyes on FED Chair Powell

The Majors

It was a bearish day for the European majors on Thursday.

The CAC40 slipped by 0.16%, with the DAX30 and the EuroStoxx600 falling by 0.42% and by 0.32% respectively.

Economic data was on the lighter side, with the German consumer sentiment figures. Disappointing consumer confidence from Germany tested support for the majors.

With the Jackson Hole Symposium underway, apprehension ahead of FED Chair Powell’s speech later today also weighed.

Economic data from the U.S had a muted impact, however, later in the European session.

The Stats

It was a quieter economic calendar through the European session.

Germany’s GfK Consumer Climate was in focus early in the session.

In September, the GfK Consumer Climate Index fell from -0.4 to -1.2. Economists had forecast a decline to -0.7.

According to the August report,

  • In August, while income expectations improved slightly, both economic expectations and propensity to buy waned.
  • As a result, the GfK is forecasting a value of -1.2 points in consumer sentiment for September.
  • According to the GfK, there was also an increase in propensity to save.
  • Concerns over COVID-19 weighed on sentiment and the September forecast.
  • Additionally, the GfK noted that inflation is playing a role, with the cost of living up 3.8% in July, year-on-year.
  • In June, sentiment had hit a 10-year high before retreating.

From the U.S

Weekly jobless claims and 2nd estimate GDP numbers were of little influence later in the session.

In the week ending 20th August, initial jobless claims rose from 349k to 353k. Economists had forecast claims of 350k.

According to 2nd estimates, the U.S economy grew by 6.6% in the 2nd quarter, which was up from a 1st estimate 6.1%. Economists had forecast growth of 6.8%, quarter-on-quarter.

The Market Movers

For the DAX: It was a mixed day for the auto sector on Thursday. Volkswagen bucked the trend, rising by 0.24%. Continental and Daimler ended the day down by 0.28% and by 0.46% respectively, with BMW falling by 0.04%.

It was a bearish day for the banks, however. Deutsche Bank and Commerzbank fell by 2.04% and by 1.31% respectively.

From the CAC, it was a relatively bearish day for the banks. BNP Paribas and Credit Agricole fell by 0.89% and by 0.67% respectively, with Soc Gen declining by 0.95%.

It was also a bearish day for the French auto sector. Stellantis NV and Renault saw losses of 0.93% and 1.21% respectively.

Air France-KLM and Airbus SE ended the day down by 1.74% and by 0.79% respectively.

On the VIX Index

It was back into the green for the VIX on Thursday.

Reversing a 2.50% fall from Wednesday, the VIX rose by 12.21% to end the day at 18.84

The NASDAQ fell by 0.64%, with the Dow and the S&P500 ending the day down by 0.54% and by 0.58% respectively.

VIX 270821 Daily Chart

The Day Ahead

It’s a particularly quiet day ahead on the Eurozone’s economic calendar. There are no material stats to provide the European majors with direction on the day.

The lack of stats will leave the majors firmly in the hands of FED Chair Powell. Powell is scheduled to speak later today.

Economic data from the U.S, will draw attention, however. Inflation and personal spending figures will be key ahead of Powell’s speech.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 65 points.

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