In This Article:
Economic Calendar:
Monday, 16th September
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Italian CPI (MoM) (Aug) Final
Tuesday, 17th September
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German ZEW Current Conditions (Sep)
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German ZEW Economic Sentiment (Sep)
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Eurozone ZEW Economic Sentiment (Sep)
Wednesday, 18th September
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Eurozone Core CPI (YoY) (Aug) Final
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Eurozone CPI (YoY) (Aug) Final
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Eurozone CPI (MoM) (Aug)
Friday, 20th September
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German PPI (MoM) (Aug)
The Majors
It was another day for the bulls on Friday, with the DAX30 rising for a 0.47% to mark an 8th consecutive day in the green. The CAC40 and EuroStoxx600 saw more modest gains of 0.22% and 0.34% respectively.
Market reaction to a shift in U.S and China trade war rhetoric and further reaction to the ECB monetary policy stimulus drove the majors on the day.
On Thursday, the U.S President spoke of a willingness to reach an interim trade agreement, raising hopes of a near-term end to the trade war. The comments followed China’s removal of certain U.S goods from planned tariffs and the U.S delay to tariffs on Chinese goods until 15th October.
From the UK, positive sentiment towards Brexit also provided support. While maintaining his stance on pulling Britain out of the EU on 31st October, the British PM was busy negotiating Brexit terms in a bid to reach an agreement in time.
The Stats
It was a relatively busy day on the Eurozone economic calendar on Friday. Key stats included Eurozone trade and wage growth numbers. Finalized inflation figures out of Spain had a muted impact on the majors.
According to Eurostat, the Eurozone’s trade surplus widened from €20.6bn to €24.8bn in July, coming in ahead of a forecasted €17.4bn.
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Exports of goods to the rest of the world stood at €206.5bn in July, rising by 6.2%, year-on-year.
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Imports of goods from the rest of the world stood at €181.7bn, up by 2.3%, year-on-year.
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Intra-euro area trade increased by 1% to €165.6bn, year-on-year.
In the 2nd quarter, wages grew by 2.7%, which was at the same pace as in the 1st quarter. According to Eurostat,
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Slovakia reported the largest increase, with wages rising by 10.7%. Estonia came in a distant second, with wages rising by 8.4%.
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Portugal (0.9%) and Malta (1.1%) reported the lowest increases in wages.
The Market Movers
From the DAX, the auto sector found strong support on the day. Daimler and Continental led the way, rising by 1.53% and 1.45% respectively. Volkswagen and BMW and wasn’t far behind with gains of 0.84% and 1.12% respectively.
It was also a bullish day for the banks. Deutsche Bank rose by 1.54%, while Commerzbank rallied by 5.9%.