In This Article:
Economic Calendar:
Wednesday, 12th August
Italian CPI (MoM) (Jul) Final
Eurozone Industrial Production (MoM) (Jun)
Thursday, 13th August
German CPI (MoM) (Jul) Final
Spanish CPI (YoY) (Jul) Final
Spanish HICP (YoY) (Jul) Final
Friday, 14th August
French CPI (MoM) (Jul) Final
French HICP (MoM) (Jul) Final
Eurozone GDP (YoY) (Q2) 2nd Estimate
Eurozone GDP (QoQ) (Q2) 2nd Estimate
Eurozone Trade Balance (Jun)
The Majors
It was a particularly bullish day for the European majors on Tuesday. The CAC40 rallied by 2.41% to lead the way, with the DAX30 and EuroStoxx600 gaining 2.04% and 1.68% respectively.
Solid economic data from China and continued hope of a speedier economic recovery fuelled demand for riskier assets on the day.
From the U.S, Trump’s executive orders from the weekend and hopes of a stimulus package by the end of the week continued to add support.
With the markets in buoyant mood, news from Russia of Putin’s approval for the first COVID-19 vaccine was also positive.
The Stats
It was a relatively quiet day on the Eurozone economic calendar. Key stats included August’s ZEW Economic Sentiment figures for Germany and the Eurozone.
According to the latest report,
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Germany’s Indicator of Economic Sentiment rose from 59.3 to 71.5, coming in well above a forecasted 58.0.
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The Eurozone’s indicator increased by 4.4 points to 64.0.
From the U.S
A pickup in wholesale inflationary pressures supported the European majors later in the session.
In July, the Producer Price Index increased by 0.6%, coming in ahead of a forecasted 0.3% rise. In June, the PPI had fallen by 0.2%.
The Market Movers
For the DAX: It was a bullish day for the auto sector on Tuesday. Continental rallied by 7.19% to lead the way for a 2nd consecutive day. BMW, Daimler, and Volkswagen also found strong support with gains of 4.41%, 2.02%, and 3.40% respectively.
Car sales figures from China delivered the auto sector with the boost on Tuesday.
It was also a bullish day for the banks. Deutsche Bank rose by 1.52%, with Commerzbank gaining 1.16%.
From the CAC, it was a bullish day for the banks. BNP Paribas and Credit Agricole rallied by 4.68% and by 4.85% respectively, with Soc Gen gaining 3.69%.
The French auto sector also found strong support, with Peugeot and Renault rallying by 5.83% and by 4.11% respectively.
Air France-KLM trailed the front runners, rising by 2.83%, while Airbus SE rallied by 5.72%.
On the VIX Index
A run of 7 consecutive days in the red came to an end on Tuesday, with the VIX rising by 8.59%. Reversing a 0.36% decline from Monday, the VIX ended the day at 24.03.