European Equities: It’s All Eyes on the ECB Monetary Policy Decision and Press Conference


Thursday, 11th March

ECB Interest Rate Decision (Mar)

ECB Press Conference

Friday, 12th March

German CPI (MoM) (Feb)

Spanish CPI (YoY) (Feb)

Spanish HICP (YoY) (Feb)

Eurozone Industrial Production (MoM) (Jan)

The Majors

It was a relatively bullish day for the European majors on Wednesday.

The CAC40 rose by 1.11%, with the DAX30 and the EuroStoxx600 ending the day up by 0.71% and by 0.31% respectively.

A lack of economic data from the Eurozone left the European majors to take direction from the Asian and U.S sessions.

Giving the broader European majors a boost was softer than expected inflation figures from the U.S late in the European session.

The Stats

It was a particularly quiet day on the economic calendar on Wednesday. There were no material stats from the Eurozone to provide the majors with direction.

From the U.S

Inflation figures for February were in focus late in the session.

In February, the annual rate of core inflation softened from 1.4% to 1.3% versus a forecasted 1.4%.

Month-on-month, core consumer prices increased by a further 0.1%, following a 0.1% rise in January. Economists had forecast a 0.2% increase.

Consumer prices rose by 0.4%, following a 0.3% increase in January. Economists had forecast a 0.4% rise.

The Market Movers

For the DAX: It was a mixed day for the auto sector on Wednesday. BMW and Volkswagen rose by 2.30% and by 2.02%, with Daimler gaining 1.28%. Continental saw red, however, falling by 2.44%.

It was also a mixed day for the banks. Deutsche Bank rose by 0.51%, while Commerzbank slid by 2.78%.

From the CAC, it was a relatively bullish day for the French banks. BNP Paribas and Soc Gen saw gains of 0.32% and 0.34% respectively, with Credit Agricole rising by 0.48%.

The French auto sector found yet more support. Stellantis NV rallied by 2.06%, with Renault ending the day up by 0.60%.

Air France-KLM and Airbus SE ended the day down by 1.64% and by 1.27% respectively.

On the VIX Index

It was a second consecutive day in the red for the VIX on Wednesday, marking a 3rd day in the red from 7 sessions. Following a 5.65% fall from Tuesday, the VIX declined by 6.12% to end the day at 22.56.

The NASDAQ slipped by 0.04%, while the Dow and S&P500 rose by 1.46% and by 0.60% respectively.

The Day Ahead

It’s another quiet day ahead on the European economic calendar. There are no material stats to provide the European majors with direction through the European session.

While there are no stats, the ECB is in action later today.

Expect plenty of influence as the markets wait to see how the ECB addresses reinflation and rising government bond yields.

From the U.S, weekly jobless claims figures are due out along with January’s JOLTs job openings. The ECB press conference, however, will likely mute the immediate effect of any stats from the U.S.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 69 points.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire