European Equities: Economic Sentiment and COVID-19 in Focus


Tuesday, 15th March

French HICP (MoM) (Feb) Final

Italian CPI (MoM) (Feb) Final

German ZEW Current Conditions (Mar)

German ZEW Economic Sentiment (Mar)

Eurozone ZEW Economic Sentiment (Mar)

Wednesday, 16th March

Eurozone Core CPI (YoY) (Feb) Final

Eurozone CPI (MoM) (Feb) Final

Eurozone CPI (YoY) (Feb) Final

Thursday, 17th March

Eurozone Wages in euro zone (YoY) (Q4)

Eurozone Trade Balance (Jan)


Friday, 18th March

German PPI (MoM) (Feb)

The Majors

It was a bearish start to the week for the European majors on Monday, with the majors giving up gains from early in the session.

The CAC40 and the DAX30 fell by 0.17% and by 0.28% respectively. The EuroStoxx600 ended the day flat.

While there were no material stats from the Eurozone to consider, economic data from China had delivered early support.

In February, industrial production surged by 35.1%, with fixed asset investments jumping by 35%. Retail sales were also impressive, rising by 33.8%.

The unemployment rate was the only blemish, rising from 5.2% to 5.5%.

Impressive numbers from China and positive U.S data painted a rosier economic outlook on the day.

While reinflation remains an ongoing concern, the ECB’s promise to reign in rising borrowing costs remained a comfort.

The downside was also limited in spite of a spike in new COVID-19 cases, the rollout of new restrictions, and vaccination woes.

The Stats

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

From the U.S

NY Empire State Manufacturing Index figures were in focus late in the European session.

In March, the NY Empire State Manufacturing Index increased from 12.1 to 17.4. Economists had forecast an increase to 14.5.

According to the March survey,

  • While new orders rose modestly, shipments reportedly rose markedly in March.

  • Employment levels and the average work week both increased modestly.

  • Input prices rose at the fastest pace in almost a decade, with selling prices also seeing a sharp rise.

  • Firms remained optimistic, anticipating significant increases in employment.

The Market Movers

For the DAX: It was a mixed day for the auto sector on Monday. Volkswagen rallied by 2.58%, with BMW gaining 0.09%. Continental and Daimler ended the day down by 0.57% and by 0.71% respectively, however.

It was a bearish day for the banks. Deutsche Bank fell by 1.47%, with Commerzbank sliding by 4.60%.

From the CAC, it was a mixed day for the banks. BNP Paribas and Credit Agricole fell by 2.35% and by 1.30% respectively, while Soc Gen rose by 0.51%.

It was also a mixed day for the French auto sector. Stellantis NV rallied by 2.09%, while Renault ended the day with a 2.00% loss.

Air France-KLM rose by 0.34%, while Airbus SE ended the day flat.

On the VIX Index

It was a 5th consecutive day in the red for the VIX on Monday, marking a 6th day in the red from 7 sessions. Following a 5.57% fall on Friday, the VIX declined by 3.19% to end the day at 20.03.

The NASDAQ rose by 1.05%, with the Dow and the S&P500 gaining 0.53% and 0.65% respectively.

The Day Ahead

It’s a relatively busy day ahead on the European economic calendar. Key stats include March ZEW Economic Sentiment figures for Germany and the Eurozone.

Finalized inflation figures for France and Italy are also due out but will likely have a muted impact on the majors.

From the U.S, retail sales and industrial production figures for February will also influence late in the European session.

Away from the economic calendar, concerns over the latest spike in new COVID-19 cases could weigh on the majors.

The Futures

In the futures markets, at the time of writing, the Dow Mini was down by 57 points.

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

This article was originally posted on FX Empire