The futures point to the red, with no economic data to influence ahead of the FED. The U.S stimulus package and COVID-19 will remain in focus.
German Unemployment Change (Jul)
German Unemployment Rate (Jul)
Eurozone Unemployment Rate (Jun)
German CPI (MoM) (Jul) Prelim
Friday, 31st July
French GDP (QoQ) (Q2)
German Retail Sales (MoM) (Jun)
French Consumer Spending (MoM) (Jun)
French CPI m/m (Jul) Prelim
French HICP m/m (Jul) Prelim
Spanish GDP (QoQ) (Q2)
Italian CPI (MoM) (Jul) Prelim
Eurozone CPI (YoY) (Jul) Prelim
Eurozone Core CPI y/y (Jul) Prelim
Eurozone GDP q/q (Q2) 1st Estimate
Eurozone GDP y/y (Q2) 1st Estimate
It was another mixed day for the European majors on Tuesday. The EuroStoxx600 ended the day up by 0.42%, while the CAC40 and DAX30 fell by 0.22% and by 0.03% respectively.
As the markets continued to grapple with COVID-19 and geopolitics, the progress of the COVID-19 stimulus package also tested support.
Earnings delivered mixed results. While Peugeot reported profit, LVMH slumped in response to some quite dire results.
It was a particularly quiet day on the Eurozone economic calendar. There were no material stats to provide the European majors with direction.
From the U.S
Late in the European session, July’s CB Consumer Confidence figures were in focus.
The CB Consumer Confidence Index fell from 98.3 to 92.6. Economists had forecast a decline to 94.5.
May house price figures had a muted impact on the majors later in the day.
The Market Movers
For the DAX: It was a bearish day for the auto sector on Tuesday. BMW, Continental, and Volkswagen saw losses of 0.60%, 0.22%, and 0.24% respectively. Daimler slid by 1.38%, however, reversing a trend-bucking 0.62% gain from Monday.
It was a mixed day for the banks. While Deutsche Bank fell by 0.44%, Commerzbank ended the day with a 0.51% gain.
From the CAC, it was a mixed day for the banks. Soc Gen and Credit Agricole rose by 0.25% and by 0.86% respectively. BNP Paribas bucked the trend with a 0.40% loss.
It was another mixed day for the French auto sector. Peugeot rose by 2.42% following better than expected earnings, while Renault fell by 1.55%.
Air France-KLM continued to struggle, falling by 0.77% following a 4.97% slide on Monday. Airbus SE found support, however, rallying by 3.12%.
LVMH was amongst the worst performers, falling by 4.07% in response to dire earnings results and a negative near-term outlook.
On the VIX Index
It was back into the green for the VIX on Tuesday, following 2 consecutive days in the red. Partially reversing 4.26% decline from Monday, the VIX rose by 2.83% to end the day at 25.44.
Market apprehension hit the U.S equity markets on Tuesday as the markets monitored the progress of the COVID-19 stimulus package.
A proposed cut to unemployment benefits amidst unprecedented unemployment levels soured the mood.
The S&P500 and Dow fell by 0.65% and by 0.77% respectively, with the NASDAQ sliding by 1.27%.
The Day Ahead
It’s another quiet day ahead on the Eurozone economic calendar. There are no material stats due out of the Eurozone to provide direction on the day.
A lack of stats will leave the majors in the hands of corporate earnings, geopolitics, and sentiment towards U.S monetary and fiscal policy.
On the corporate earnings front, Deutsche Bank is scheduled to release its earnings.
From the U.S
June’s goods trade data and pending home sales figures are due out. We would expect the numbers to have a muted impact on the European majors, however.
The FED is in action after the European close and will need to assure the markets that there is more left in the war chest. Some apprehension is to be expected.
Any chatter from the U.S and China, the U.S COVID-19 stimulus package, and the latest COVID-19 figures will influence.
The Latest Coronavirus Figures
According to figures at the time of writing, the number of new coronavirus cases rose by 241,391 to 16,883,654 on Tuesday. On Monday, the number of new cases had risen by 229,469. The daily increase was higher than Monday’s rise and up from 240,565 new cases from the previous Tuesday.
Germany, Italy, and Spain reported 2,602 new cases on Tuesday, which was down from 7,167 new cases on Monday. On the previous Tuesday, 1,889 new cases had been reported.
From the U.S, the total number of cases rose by 64,799 to 4,498,209 on Tuesday. On Monday, the total number of cases had increased by 61,571. On Monday, 21st July, a total of 67,140 new cases had been reported.
In the futures markets, at the time of writing, the DAX was down by 45.5 points, while the Dow was up by 20 points.