European Equities: Private Sector PMIs and Eurozone Consumer Confidence in Focus

Economic Calendar:Wednesday, 24th March

French Manufacturing PMI (Mar) Prelim

French Services PMI (Mar) Prelim

German Manufacturing PMI (Mar) Prelim

German Services PMI (Mar) Prelim

Eurozone Markit Composite / Manufacturing / Services PMI (Mar) Prelim

Eurozone Consumer Confidence (Mar) Flash

Thursday, 25th March

GfK German Consumer Climate (Apr)

ECB Economic Bulletin

ECB President Lagarde Speaks

Friday, 26th March

Spanish GDP (QoQ) (Q4)

German Ifo Business Climate Index (Mar)

It was another mixed day for the European majors on Tuesday. The DAX30 eked out a 0.03% gain, while the CAC40 and the EuroStoxx600 fell by 0.39% and by 0.20% respectively.

Once more, there were no major stats from the Eurozone or the U.S to provide direction on the day.

The lack of stats left the majors in the hands of COVID-19 news. On Tuesday, Germany announced plans to reintroduce lockdown measures until 18th April.

Vaccine shortages and the reintroduction of lockdown measures in France, Germany, and beyond pegged the majors back on the day.

The Stats

It was a particularly quiet day on the economic calendar on Tuesday. There were no major stats to provide the majors with direction.

From the U.S

It was also a particularly quiet day, with no material stats from the U.S to provide the European majors with direction.

The Market Movers

For the DAX:It was a bearish day for the auto sector on Tuesday.Volkswagen slid by 5.42%, with Continental ending the day down by 2.84%. BMWand Daimlerwerent far behind, falling by 2.24% and by 2.21% respectively.

It was a mixed day for the banks, however. Deutsche Bank fell by 1.84%, while Commerzbankrose by 0.34%.

From the CAC, it was another bearish day for the banks. BNP Paribasand Soc Gensaw losses of 0.69% and 0.61% respectively, with Credit Agricole falling by 1.04%.

It was also another bearish day for the French auto sector. Stellantis NVand Renaultslid by 4.54% and by 3.37% respectively.

Air France-KLMand Airbus SEalso hit reverse, ending the day down by 2.36% and by 1.92% respectively.

On the VIX Index

It was back into the green for the VIX on Tuesday, marking just the 3rd gain from 13 sessions.

Partially reversing a 9.88% fall from Monday, the VIX rose by 7.52% to end the day at 20.30.

The NASDAQ slid by 1.12%, with the Dow and the S&P500 declining by 0.94% and by 0.76% respectively.

The Day Ahead

After a quiet start to the week, its a particularly busy day ahead on the European economic calendar. Through the early part of the session, prelim March private sector PMIs are due out for France, Germany, and the Eurozone.

Expect Germany‘s manufacturing PMI and the Eurozone’s Manufacturing and Services PMIs to have the greatest impact.

The markets will not only be looking for a continued pickup in manufacturing sector but also improving conditions across the services sector. New lockdown measures may limit the impact of any positive service sector numbers, however.

Late in the European session, flash consumer confidence figures for the Eurozone will also draw interest.

From the U.S, private sector PMI figures are also due out. Expect service sector PMI figures for March to be the key driver.

On the monetary policy front, FED Chair Powell will also deliver a 2nd day of testimony, which will need monitoring.

Away from the economic calendar, COVID-19 news will also influence. Any news of more member states reintroducing lockdown measures would weigh.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 26 points.