European Equities: U.S Weekly Jobless Claims, COVID-19, and Geopolitics in Focus

Economic Calendar:Thursday, 13th August

German CPI (MoM) (Jul) Final

Spanish CPI (YoY) (Jul) Final

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Spanish HICP (YoY) (Jul) Final

Friday, 14th August

French CPI (MoM) (Jul) Final

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French HICP (MoM) (Jul) Final

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Eurozone GDP (YoY) (Q2) 2nd Estimate

Eurozone GDP (QoQ) (Q2) 2nd Estimate

Eurozone Trade Balance (Jun)

[fx-article-ad]The Majors

It was another bullish day for the European majors on Wednesday. The EuroStoxx600 ended the day up by 1.11% to lead the way, with the CAC40 and DAX30 gaining 0.86% and 0.90% respectively.

The upside on the day came in spite of the continued rise of new COVID-19 cases. New Zealand reported its first cases in over 3-months, with France also reporting a spike in new cases. Germany has also been seeing sizeable daily increases, raising the threat of a more widespread 2nd wave of the pandemic.

From the U.S, there were no further discussions to break the deadlock on the COVID-19 aid package, which was also negative for the majors.

在统计

这是在欧元区经济日历相对安静的一天。主要统计信息包括对意大利六月欧元区的工业生产数据和结算七月通货膨胀数据

据欧盟统计局，

工业生产在六月在五月6.2％以下上升增加了9.1％。经济学家此前预计9.2％的增幅。

耐用消费品生产增长20.2％跃升，随着生产的资本货物增长14.2％。

有也增量值在生产的中间产品的（+ 6.7％），非耐用消费品（+ 4.8％），和能量（2.6％）。

斯洛伐克录得最大增幅（+ 21.7％），而比利时看到的最大跌幅（-1.4％）。

去年同期然而，产量下降12.3％。

与2019年6月相比，最大减小在葡萄牙（-14.8％），德国登记和西班牙（均为-14.1％）和意大利（-13.7％）。

从意大利，消费者价格7，根据下降0.2％，到最后确定的数字，其中从初试下降0.1％。

从US 下降

经济数据包括七月份的通货膨胀数据。在通货膨胀压力的拾取器在会话支持欧洲专业后面。

在七月，核心通货膨胀的年增长率从1.2％回升至1.6％。这两个核心消费者物价指数和消费者物价指数7月份上升了0.6％。

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Better than expected economic data in recent weeks and corporate earnings have remained the key drivers.

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On the corporate earnings front, ABN Amro was the headline, jumping by 7.4% off the back of better than expected 2nd quarter results.

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The Stats

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It was a relatively quiet day on the Eurozone economic calendar. Key stats included the Eurozones industrial production figures for June and finalized July inflation figures for Italy.

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According to Eurostat,

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• Industrial production increased by 9.1% in June following a 6.2% rise in May. Economists had forecast a 9.2% rise.

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• Production of durable consumer goods jumped by 20.2%, with the production of capital goods up by 14.2%.

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• There were also increases in the production of intermediate goods (+6.7%), non-durable consumer goods (+4.8%), and energy (+2.6%).

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• Slovakia registered the largest increase (+21.7%), while Belgium saw the largest drop (-1.4%).

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• Year-on-year, however, production was down by 12.3%.

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• Compared with June 2019, the largest decreases were registered in Portugal (-14.8%), Germany and Spain (both -14.1%), and Italy (-13.7%).

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From Italy, consumer prices fell by 0.2% in July, according to finalized figures, which was down from a prelim 0.1% decline.

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From the U.S

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Economic data included Julys inflation figures. A pickup in inflationary pressures supported the European majors later in the session.

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In July, the annual rate of core inflation picked up from 1.2% to 1.6%. Both core consumer prices and consumer prices rose by 0.6% in July.

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The pickup in inflationary pressures is unlikely to have any bearing on monetary policy, however. Labor market conditions will likely continue to pin back inflation.

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The Market Movers

For the DAX:It was another bullish day for the auto sector on Wednesday. Continental and Daimlerrose by 2.06% and by 2.11% respectively to lead the way. BMW and Volkswagenwerent far behind with gains of 1.63% and 1.55% respectively.

Car sales figures from China continued to deliver support to the auto sector following Tuesdays rally.

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It was also another bullish day for the banks. Deutsche Bankrose by 1.32%, with Commerzbank gaining 0.49%.

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From the CAC, it was a bullish day for the banks. Credit Agricoleand Soc Gen saw gains of 0.64% and 0.72% respectively, withBNP Paribasrising 0.89%.

It was a mixed day for the French auto sector, however. Peugeotfell by 0.38%, while Renault ended the day up by 0.86%.

Air France-KLMcoughed up Tuesdays gain, falling by 2.40%, with Airbus SEseeing a 1.65% loss on the day.

On the VIX Index

It was back into the red for the VIX on Wednesday. A 7.28% fall marked an 8th day in the red out of 9. Partially reversing an 8.59% rise from Tuesday, the VIX ended the day at 22.28.

In spite of the continued lack of progress on the COVID-19 aid package, economic data and falling U.S COVID-19 cases provided support.

The S&P500 and Dow saw gains of 1.40% and by 1.05% respectively, while the NASDAQ rallied by 2.13%.

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The Day Ahead

Its another relatively quiet day ahead on the Eurozone economic calendar. Key stats include finalized July inflation figures for Germany and Spain.

Barring particularly dire numbers the stats should have a muted impact on the majors.

From the U.S, Julys import and export price index figures and the weekly jobless claims are due out.

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Expect plenty of influence from the jobless claims figures. Following last weeks drop, the markets will need to see another marked decline to support riskier assets.

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Away from the economic calendar, COVID-19, geopolitics, and updates from Capitol Hill will continue to be in focus.

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While there are hopes of further progress towards a vaccine, a continued upward trend in new COVID-19 cases could spook the markets.

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The Futures

In the futures markets, at the time of writing, the Dow was up by 18 points.

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For a look at all of todays economic events, check out our economic calendar.

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