In This Article:
The Majors
It was another positive week for the European majors, with the CAC40 up by 0.69% to lead the way. The DAX30 and Eurostoxx600 saw more modest gains of 0.52% and 0.36% respectively.
For the DAX30 and EuroStoxx600, 0.73% and 0.68% gains respectively on Friday delivered the upside for the week. For the CAC40, a 0.56% rise added to the upside from earlier in the week.
Corporate earnings, economic data, and monetary policy were all in focus in the week, as was chatter from the U.S and China on trade.
On the trade front, news of China having doubts over the possibility of a long-term trade agreement with the U.S weighed mid-week.
Corporate earnings also pressured the DAX, with Deutsche Bank seeing particularly heavy losses following Wednesday’s 3rd quarter earnings release.
It was the stats that ultimately provided the upside for the majors in the week.
The Stats
It was a busy week on the Eurozone economic calendar.
The markets had to wait until Wednesday, however, to digest any material data.
For the DAX30, disappointing unemployment figures for October and weaker than anticipated September retail sales figures weighed.
While the unemployment rate held steady at 5%, a larger than expected 6k rise in unemployment was negative on Wednesday. A 0.1% rise in retail sales fell short of a forecasted 0.3% rise, also weighing.
On Friday, manufacturing PMI numbers out of China provided the upside, however. In October, the PMI rose from 51.4 to 51.7, coming in ahead of a forecasted 51.0.
For the CAC40, stats were mixed, with better than expected 3rd quarter GDP numbers offsetting disappointing September consumer spending figures.
The economy grew by 0.3% in the 3rd quarter, quarter-on-quarter, which was at the same pace as in the 2nd quarter. Economists had forecast a GDP of 0.2%.
Consumer spending fell by 0.4%, following a 0.1% rise in August, however. Economists had forecast a 0.1% rise.
From the Eurozone, 3rd quarter GDP numbers were skewed to the positive. While the GDP eased from 1.2% to 1.1% year-on-year, the GDP rose by 0.2% quarter-on-quarter, which was at the same pace as the 2nd quarter. Economists had forecast a GDP of 0.1%.
For the broader market, Eurozone unemployment and inflation figures had a muted impact on Thursday, with negative sentiment towards trade muting the impact of economic data on the day.
From the U.S, nonfarm payrolls provided further support to the European majors on Friday.
The Market Movers
From the DAX, it was a mixed week for the auto sector. Continental bucked the trend, sliding by 1.46% in the week. The losses came in spite of a 2.24% rally on Friday. BMW led the way for the week, rising by 1.02%, the upside coming off the back of a 1.02% gain on Friday.