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 another bearish day for the European majors on Friday, with the CAC40 sliding by 1.58% to lead the way down. The EuroStoxx600 and the DAX30 saw more modest losses of 0.71% and 1.20% respectively.
Economic data the Eurozone took a back seat on Friday, as the markets responded to economic data from China.
The disappointing numbers from China set the tone for the day. Later in the day, news of the UK adding France to its quarantine list hit travel stocks.
From the U.S, there was also a lack of progress towards a 2nd COVID-19 stimulus package that added to the downside.
The Stats
It was a relatively busy day on the Eurozone economic calendar. Key stats included the Eurozone’s 2nd estimate GDP and June trade figures.
There were no revisions to the Eurozone’s GDP figures, with the economy contracting by 12.1% in the 2nd quarter. On an annualized basis, the economy contracted by 15%. These were in line with forecasts.
The Eurozone’s trade surplus widened from €9.4bn to €21.2bn in June. The numbers failed to support the European majors, however, with the markets looking ahead to the U.S – China trade talks over the weekend.
From the U.S
Economic data included July’s retail sales and industrial production figures, together with August consumer sentiment numbers.
A further increase in retail sales and industrial production together with an uptick in consumer sentiment failed to support, however.
From China
Retail sales fell by 1.10%, following a 1.8% decline in June, which disappointed. Economists had forecast a 0.1% increase.
Industrial production also failed to impress, with a 4.8% year-on-year increase falling short of a 5.1% rise.
The Market Movers
For the DAX: It was a mixed day for the auto sector on Friday. Continental rose by 1.65% to buck the trend on the day. BMW and Daimler fell by 0.45% and by 0.97% respectively, with Volkswagen ending the day down by 0.17%.
It was a bearish day for the banks. Deutsche Bank fell by 0.99%, with Commerzbank declining by 0.29%.
From the CAC, it was a bearish day for the banks. Credit Agricole fell by 1.32% to lead the way down, with BNP Paribas and Soc Gen seeing more modest losses of 0.89% and 0.94% on the day.