European Equities: Eurozone Stats Likely to Have Muted Impact ahead of the FED…


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 bullish day for the European majors on Tuesday. The CAC40 and the DAX30 rose by 0.32% and by 0.66% respectively, with the EuroStoxx600 gaining 0.88%.

While economic data from the U.S disappointed, stats from the Eurozone provided support in the early part of the session.

The auto sector was on the move early in the week, with Volkswagen delivering a more optimistic outlook on earnings.

For the majors, concerns over vaccine woes and the latest spike in new COVID-19 cases across Europe limited the upside, however.

The Stats

It was a relatively day on the economic calendar on Tuesday. Economic sentiment figures for Germany and the Eurozone were in focus.

Finalized inflation figures from France and Italy were also on the docket but had a muted impact on the majors.

Germany’s ZEW Economic Sentiment Indicator rose from 71.2 to 76.6 for March. Economists had forecast a more modest rise to 74.0.

Sentiment towards current conditions also improved in March, with the indicator rising from -67.2 to -61.0. Economists had forecast an increased to -62.0.

For the Eurozone, the ZEW Economic Sentiment Indicator rose from 69.6 to 74.0.

From the U.S

Retail sales and industrial production figures were in focus late in the European session. The numbers were skewed to the negative, however.

In February, core retail sales fell by 2.7%, partially reversing an 8.3% gain from January. Economists had forecast a 0.1% decline.

Retail sales slid by 3.0% following a 7.6% increase in January. Economists had forecasted a more modest 0.5% decline.

Industrial production figures were not much better, with production falling by 2.2% in February versus a forecasted 0.3% rise. In January, production had risen by 1.1%.

The Market Movers

For the DAX: It was a bullish day for the auto sector on Tuesday. Volkswagen jumped by 7.31%, with BMW and Continental rallying by 3.12% and by 2.90% respectively. Daimler ended the day up by a modest 0.98%.

It was a bearish day for the banks, however. Deutsche Bank and Commerzbank fell by 0.65% and by 0.76% respectively.

From the CAC, it was a bearish day for the banks. BNP Paribas fell by 1.23%, with Credit Agricole and Soc Gen ending the day with losses of 0.37% and 0.94% respectively.

It was also a bearish day for the French auto sector. Stellantis NV and Renault fell by 0.73% and by 1.41% respectively.

Air France-KLM and Airbus SE ended the day with gains of 0.88% and 1.78% respectively, however.

On the VIX Index

It was a 6th consecutive day in the red for the VIX on Tuesday, marking a 7th day in the red from 8 sessions. Following a 3.19% fall on Monday, the VIX declined by 1.20% to end the day at 19.79.

The NASDAQ rose by 0.09%, while the Dow and the S&P500 slipped by 0.08% and by 0.16% respectively.

The Day Ahead

It’s a relatively busy day ahead on the European economic calendar. Key stats include finalized February inflation figures for the Eurozone.

From the U.S, housing sector numbers are due out ahead of the FOMC’s monetary policy decision and projections.

While the markets are expecting the FOMC to stand pat after the European close, there will be some uncertainty on the projections.

Concerns over reinflation have continued to linger, placing a greater emphasis on the FED’s outlook on inflation and rates.

Away from the economic calendar, COVID-19 news will also need monitoring.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 25 points.

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

This article was originally posted on FX Empire