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European Equities: Economic Data and Corporate Earnings in Focus Ahead of the FED

Economic Calendar:

Wednesday, 28th April 2021

GfK German Consumer Climate (May)

Thursday, 29th April 2021

Spanish HICP (YoY) (Apr) Prelim

German Unemployment Change and Rate (Apr)

German CPI (MoM) (Apr) Prelim

Friday, 30th April 2021

French GDP (QoQ) (Q1)

German GDP (QoQ) (Q1)

German GDP (YoY) (Q1)

Spanish GDP (QoQ) (Q1)

Italian CPI (MoM) (Apr) Prelim

Eurozone CPI (YoY) (Apr) Prelim

Eurozone Unemployment Rate (Mar)

Eurozone GDP (QoQ) (Q1)

Eurozone GDP (YoY) (Q1)

The Majors

It was a relatively bearish day for the European majors on Tuesday. The DAX30 fell by 0.31%, with the CAC40 and the EuroStoxx600 seeing losses of 0.03% and 0.08% respectively.

There were no major stats from the Eurozone to provide the majors with direction on the day.

Economic data from the U.S failed to provide support late in the session, with the markets taking a more cautious stance ahead of today’s FOMC monetary policy decision.

While the markets are expecting the FED to stand pat on policy, uncertainty remains over when the FED will begin to change its position.

Labor market conditions have yet to recovery to pre-pandemic levels, which is expected the support the FED’s current stance and outlook.

The Stats

It was a particularly quiet day on the economic calendar on Tuesday. There were no material stats from the Eurozone for the markets to consider.

From the U.S

Consumer confidence was in focus late in the session.

In April, the CB Consumer Confidence Index rose from 109.0 to 121.7, coming in well ahead of a forecasted 113.0.

The Market Movers

For the DAX: It was another mixed day for the auto sector on Tuesday. BMW fell by 0.33%, with Continental and Volkswagen seeing modest losses of 0.05% and 0.13% respectively. Daimler bucked the trend, rising by 0.23%.

It was another bullish day for the banks. Deutsche Bank and Commerzbank ended the day with gains of 1.01% and 2.01% respectively.

From the CAC, it was a mixed day for the banks. BNP Paribas slipped by 0.10%, while Credit Agricole and Soc Gen rose by 1.35% and by 2.15% respectively.

It was also a mixed day for the French auto sector. Stellantis NV fell by 0.36%, while Renault ended the day up by 0.48%.

Air France-KLM and Airbus SE saw losses of 0.34% and 1.43% respectively on the day.

On the VIX Index

It was back into the red for the VIX on Tuesday.

Partially reversing a 1.79% gain from Monday, the VIX slipped by 0.45% to end the day at 17.56.

The Dow rose by 0.01%, while the NASDAQ and the S&P500 fell by 0.34% and by 0.02% respectively.

VIX 280421 Daily Chart

The Day Ahead

It’s a relatively quiet day ahead on the European economic calendar. German consumer confidence figures for May are due out ahead of the European open.

Later in the day, trade data and inventory numbers from the U.S will also draw interest.

While we can expect the numbers to influence, the FOMC monetary policy decision and rate statement are due after the European close. The markets will, therefore, likely be on a more cautious footing on the day.

On the corporate earnings front, Deutsche Bank, Apple, and Boeing are due to release quarterly earnings which will garner plenty of interest, however.

The Futures

In the futures markets, at the time of writing, the Dow Mini was down by 63 points.

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