Evergrande, ECB President Lagarde and US statistics in focus
Tuesday 28NS September
GfK Consumer Climate Germany (Oct)
Wednesday 29NS September
Spanish HICP (YoY) (Sep) Preliminary
Thursday 30NS September
French Consumer Spending (MoM) (Aug)
Unemployment in Germany (Sep)
German unemployment rate (Sep)
Italian CPI (Month) (Sep) Lead
Unemployment Rate in the Eurozone (August)
German CPI (Month) (Sep) Preliminary
Friday 1stNS October
German Retail Sales (MoM) (Aug)
Spanish Manufacturing PMI (Sep)
PMI for Italian Manufacturing (Sep)
French Manufacturing PMI (Sep) Final
PMI of the German manufacturing industry (Sep) final
Eurozone Manufacturing PMI (Sep) Final
Eurozone CPI (YoY) (Sep) Preliminary
It was a bearish end of the week for the European majors on Friday, with a 2ndnd Loss of the week.
The DAX30 lost 0.72%, while the CAC40 and EuroStoxx600 lost 0.95% and 0.90%, respectively.
Disappointing figures on business sentiment from Germany united the majors on that day.
After the Evergrande and FED-driven recovery rally on Thursday, sentiment worsened at the end of the week. The uncertainty about Evergrande’s future remained until the weekend.
The German IFO business climate index fell from 99.6 to 98.8, the current assessment sub-index from 101.4 to 100.4. The business expectations sub-index fell from 97.5 to 97.3.
From the USA
Economic data was limited to August housing data, which was subdued for the majors.
The market movers
For the DAX: It was a mixed day for the auto industry on Friday. BMW down 0.09% to counter the trend of the day. Daimler rose 1.80% to take the lead, but with Continental and Volkswagen ended the day by 0.02% and 0.08%, respectively.
It was a bullish day for banks. Deutsche Bank and Commerzbank recorded increases of 1.69% and 1.20% respectively.
From the CAC, it was a bullish day for banks. BNP Paribas and Credit Agricole increased by 0.80% and 0.24%, with Soc Gen up 1.11%.
It was also a bullish day for the French auto sector. Stellantis NV and Renault ended the day up 0.12% and 2.37% respectively.
Air France-KLM rose 3.09% while Airbus SE decreased 1.10%.
On the VIX index
It was a 4thNS Day in a row in the red for the VIX on Friday.
After falling 10.73% on Thursday, the VIX fell 4.72% to end the day at 17.75.
The NASDAQ lost 0.03% while the Dow and S&P500 closed the day 0.10% and 0.15%, respectively.
The day ahead
A calm day lies ahead on the economic calendar of the Eurozone.
There are no essential statistics from the Eurozone to give direction to the majors. On the monetary policy front, ECB President Lagarde will speak. Expect comments on the economic outlook and monetary policy to provide direction.
Later in the day, U.S. durable and durable goods will affect the later day. A further recovery in core durable goods orders would provide support.
Aside from the economic calendar, the Evergrande news will continue to be an area of interest.
On the futures markets, the Dow Mini was up 144 points at the time of going to press.
You can find an overview of all today’s economic events in our economic calendar.
This article was originally published on FX Empire