In This Article:
Economic Calendar:
Thursday, 22nd August
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French Manufacturing PMI (Aug) Prelim
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French Services PMI (Aug) Prelim
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German Manufacturing PMI (Aug) Prelim
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German Services PMI (Aug) Prelim
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Eurozone Manufacturing PMI (Aug) Prelim
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Eurozone Markit Composite PMI (Aug) Prelim
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Eurozone Services PMI (Aug) Prelim
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ECB Publishes Account of Monetary Policy Meeting
The Majors
The European majors saw red on Tuesday. While in the red, the trio saw relatively modest losses on the day. The DAX30 and CAC40 fell by 0.55% and 0.50% respectively, with the EuroStoxx600 falling by 0.68%.
Economic data had a muted impact on the majors, leaving geopolitics to provide direction on the day.
From the EU, Italian Prime Minister Conte’s resignation announcement weighed on the majors. The resignation came in response to Salvini’s call for a vote of no confidence last week.
On the trade war front, news of the U.S administration adding an additional 46 Huawei-linked entities to the existing blacklist was also negative. The move came in spite of Huawei receiving the 90-day extension.
The Stats
On the data front, economic data out of the Eurozone was limited to German wholesale inflation figures for July.
Producer prices of industrial products rose by 0.1% in July, partially reversing a 0.4% slide in June. Economist had forecast the index to remain unchanged.
According to Destatis,
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Compared with June 2018, producer prices of industrial products increased by 1.1%.
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Rising electricity prices had the greatest contribution, rising by 8.4% year-on-year. (Month-on-month, electricity prices rose by 2.2%.
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Year-on-year, energy prices as a whole increased by 2.1% and by 0.7%, month-on-month.
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Excluding energy, the index was up by 0.7% y/y, while down by 0.1% m/m.
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Prices of non-durable consumer goods increased by 1.7% y/y, while down by 0.2% m/m.
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Food prices rose by 2.2%, with prices of capital goods and durable consumer goods rising by 1.5% and 1.3% respectively, year-on-year.
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The figures had a muted impact on the European majors, however.
There were no material stats out of the U.S on the day to influence the European majors.
The Market Movers
From the DAX, Adidas bucked the trend on the day, rising by 0.19% as the rest of the index components saw red. From the auto sector, Daimler was the worst performer, sliding by 2.06%. Continental and BMW weren’t far behind with losses of 1.26% and 1.14% respectively. Volkswagen fell by 1.07%.
In the banking sector, Deutsche Bank declined by 1.01%, while Commerzbank slid by 1.97%.
From the CAC, things were not much better, with just 3 components in the green. Airbus led the way, rising by 1.14%.