In This Article:
Economic Calendar:
Wednesday, 4th December 2019
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Spanish Services PMI (Nov)
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Italian Services PMI (Nov)
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French Services PMI (Nov) Final
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German Services PMI (Nov) Final
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Eurozone Markit Composite PMI (Nov) Final
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Eurozone Services PMI (Nov) Final
Thursday, 5th December 2019
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German Factory Orders (MoM) (Oct)
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Eurozone GDP (QoQ) (Q3) 3rd Estimate
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Eurozone GDP (YoY) (Q3) 3rd Estimate
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Eurozone Retail Sales (MoM) (Oct)
Friday, 5th December 2019
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German Industrial Production (MoM) (Oct)
The Majors
After a particularly bearish start to the week, it was a mixed day for the majors on Tuesday, with the DAX30 rising by 0.19% to buck the trend.
The CAC40 and EuroStoxx600 joined their U.S peers in the red, with losses of 1.03% and 0.63% respectively.
With no major stats to provide direction on the day, negative sentiment towards trade weighed on risk appetite on the day.
The CAC40 came under fire off the back of U.S Administration threats of possible duties on all French exports to the U.S.
For those looking for a phase 1 trade agreement between the U.S and China, Trump also dowsed hopes of an agreement by the end of the year. On Tuesday, the U.S President stated that he may wait until after the 2020 Presidential Election.
The Stats
It was a quiet day on the Eurozone economic calendar on Tuesday. Key stats were limited to Spanish unemployment figures.
While unemployment rose by 20.5k, following a 97.9k jump in the previous month, economists had forecast a 75.2k increase.
The stats were of little influence, however, as chatter on trade dominated throughout the day.
There were no material stats from the U.S to provide direction later in the day.
The Market Movers
For the DAX: It was a mixed day for the auto sector. Daimler fell by 0.92% to lead the way down, with Continental falling by 0.02%. BMW and Volkswagen managed to avoid another day in the red, however, with the pair rising by 0.08% and by 0.15% respectively.
It was a bearish day for the banks. Deutsche Bank fell by 1.28%, with Commerzbank down by 2.36%.
From the CAC, it was also a bearish day for the banks. Credit Agricole slid by 1.74% to lead the way down. BNP Paribas and Soc Gen weren’t far behind with losses of 1.69% and 1.50% respectively.
The risk aversion also weighed on the French Auto sector. Peugeot fell by 1.77%, while Renault tumbled by 2.57%.
Trump’s latest focus on French goods added pressure on Airbus and luxury brands. Airbus was the worst performer of the 40, sliding by 4.41%. Hermes and LVMH fell by 2.53% and by 1.48% respectively.
The slide in Airbus came off the back of the WTO’s findings that the EU had failed to remove all subsidies to the aircraft manufacturer. With France introducing a digital tax that is expected to impact a number of U.S tech companies, it didn’t take long for the U.S administration to take the battle to Macron…