In This Article:
Economic Calendar:
Wednesday, 19th August
Eurozone Core CPI (YoY) (Jul) Final
Eurozone CPI (MoM) (Jul)
Eurozone CPI (YoY) (Jul) Final
Thursday, 20th August
German PPI (MoM) (Jul)
Friday, 21st August
French Manufacturing PMI (Aug) Prelim
French Services PMI (Aug) Prelim
German Manufacturing PMI (Aug) Prelim
German Services PMI (Aug) Prelim
Eurozone Manufacturing PMI (Aug) Prelim
Eurozone Markit Composite PMI (Aug) Prelim
Eurozone Services PMI (Aug) Prelim
The Majors
It was a relatively bullish day for the European majors on Monday, with the EuroStoxx600 rising by 0.32% to lead the way. The CAC40 and the DAX30 saw more modest gains of 0.18% and 0.15% respectively.
A lack of stats from the Eurozone left the majors without direction on the day. Travel stocks continued to bear the brunt of the market’s wrath following the UK’s decision to add France to its quarantine list.
From the weekend, a decision to postpone the U.S – China trade talks had no impact on the majors. The postponement would give China time to further ramp up in the import of products as outlined within the phase 1 trade agreement.
There were concerns over the latest spike in new COVID-19 cases, however, which could derail the economic recovery.
The Stats
It was a particularly quiet day on the Eurozone economic calendar. There were no material stats to provide the majors with direction.
From the U.S
Economic data included August’s NY State Empire State Manufacturing Index, which fell from 17.2 to 3.7. Economists had forecast a decline to 15.0.
According to the August survey,
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New orders were little changed, while shipments increased modestly.
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Unfilled orders declined, with inventories also falling.
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Employment inched higher, however, though the average workweek declined.
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Firms remained optimistic that conditions would improve over the next 6-months. In spite of this, optimism fell for a 2nd consecutive month.
The Market Movers
For the DAX: It was a mixed day for the auto sector on Monday. Daimler and Volkswagen rose by 0.68% and by 0.35% respectively, while Continental and. BMW fell by 1.60% and by 0.21% respectively.
It was also a bearish day for the banks. Deutsche Bank fell by 0.49%, with Commerzbank declining by 1.32%.
From the CAC, it was a bearish day for the banks. Credit Agricole fell by 1.09% to lead the way down, with BNP Paribas and Soc Gen seeing losses of 1.00% and 0.50% on the day.
It was also a bearish day for the French auto sector. Peugeot and Renault fell by 0.50% and by 0.63% respectively.
Air France-KLM slid by a further 3.56% following Friday’s 5.78% tumble. Airbus SE declined by a more modest 0.93% on the day.