Cac 40 positive.

European Equities: Economic Data from Germany and the U.S to Guide the Majors

Economic Calendar:

Tuesday, 25th May 2021

German GDP (QoQ) (Q1) Final

German GDP (YoY) (Q1) Final

German Ifo Business Climate Index (May)

Thursday, 27th May 2021

GfK German Consumer Climate (Jun)

Friday, 28th May 2021

French Consumer Spending (MoM) (Apr)

French GDP (QoQ) (Q1) Final

French CPI m/m (May) Prelim

French HICP m/m (May) Prelim

The Majors

It was a relatively bullish start to the week for the European majors on Monday, with the German markets closed.

The CAC40 and EuroStoxx600 rose by 0.35% and by 0.14% respectively.

Market optimism towards the economic outlook continued mute concerns over inflation and a possible shift in FED monetary policy. Lagarde’s assurances of unwavering support on Friday was key.

Tech stocks led the way on the day.

The Stats

There were no major stats from the Eurozone for the markets to consider, with the German markets shut on Monday.

From the U.S

There were also no material stats from the U.S to provide the majors with direction late in the session.

The Market Movers

For the DAX: Germany was on holiday at the start of the week.

From the CAC, it was a mixed day for the banks. Credit Agricole and Soc Gen ended the day down by 0.39% and by 0.15% respectively. BNP Paribas rose by 0.85% gain.

It was a bullish day for the French auto sector, however. Stellantis NV rose by 0.47%, with Renault gaining 1.41%.

Air France-KLM and Airbus SE ended the day with modest gains of 0.31% and 0.36% respectively.

On the VIX Index

It was a 3rd consecutive day in the red for the VIX on Monday.

Following a 2.52% fall on Friday, the VIX declined by 8.68% to end the day at 18.40.

The NASDAQ rallied by 1.41%, with the Dow and the S&P500 ending the day up by 0.54% and by 0.99% respectively.

VIX 250521 Daily Chart

The Day Ahead

It’s a busier day ahead on the European economic calendar. Finalized GDP numbers and IFO Business Climate figures for Germany are due out later this morning.

While we will expect the GDP numbers to draw interest, expect the IFO figures for May to be the key driver.

From the U.S, consumer confidence figures for May will also provide direction late in the European session.

The Futures

In the futures markets, at the time of writing, the Dow Mini up by 38 points, while the DAX was down by 5 points.

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