In This Article:
Economic Calendar:
Monday, 16th December 2019
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French Manufacturing PMI (Dec) Prelim
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French Services PMI (Dec) Prelim
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German Manufacturing PMI (Dec) Prelim
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German Services PMI (Dec) Prelim
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Italian CPI (MoM) (Nov) Final
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Eurozone Manufacturing PMI (Dec) Prelim
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Eurozone Markit Composite PMI (Dec) Prelim
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Eurozone Services PMI (Dec) Prelim
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Eurozone Wage Growth (YoY) (Q3)
Tuesday, 17th December 2019
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Eurozone Trade Balance (Oct)
Wednesday, 18th December 2019
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German PPI (MoM) (Nov)
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German Ifo Business Climate Index (Dec)
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Eurozone Core CPI (YoY) (Nov) Final
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Eurozone CPI (YoY) (Nov) Final
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Eurozone CPI (MoM) (Nov) Final
Friday, 20th December 2019
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GfK German Consumer Climate (Jan)
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French Consumer Spending (MoM) (Nov)
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Eurozone Consumer Confidence (Dec) Prelim
The Majors
It was a bullish end to the week for the European majors, with a 3rd consecutive day in the green contributing to a reversal of losses from the start of the week.
The EuroStoxx600 led the way on Friday, rallying by 1.15%, while the CAC40 and DAX30 saw more modest gains of 0.59% and 0.46% respectively.
Economic data and sentiment towards monetary policy took a backseat, in spite of ECB President Lagarde’s first ECB press conference on Thursday.
News of a phase 1 trade agreement drove demand for riskier assets on Friday, with Boris Johnson’s comfortable victory in the UK General Election also market risk positive.
The Stats
It was a relatively quiet day on the Eurozone economic calendar on Friday. Key stats were limited to finalized November inflation numbers out of Spain that had a muted impact on the majors.
From the U.S
Weaker than forecast retail sales figures were also brushed aside by a market relieved that China and the U.S managed to find a way forward.
Retail sales rose by 0.2%, month-on-month, following a 0.4% increase in October. Economists had forecast a rise of 0.5%. Core retail sales rose by just 0.1%, coming up short of a forecast of 0.4%. In October core retail sales had risen by 0.3%.
Import and export prices and business inventory figures garnered little to no attention.
The Market Movers
For the DAX: It was a bullish day for the auto sector. Volkswagen rallied by 2.23% to lead the way. BMW and Daimler weren’t far behind with gains of 1.35% and 1.32% respectively. Continental trailed, however, rising by a more modest 0.15% on the day.
It was a mixed day for the banks, with Commerzbank rising by 0.53%, while Deutsche Bank slid by 1.18% to buck the trend on the day. The slide came in spite of Deutsche Bank announcing that it’s looking to cut its bonus pool by as much as 20%.