In the early part of the week, a sharp tumble on Tuesday limited the upside, however. Negative chatter on Brexit and another rise in tensions between the U.S and China had tested risk appetite.
Adding to the downside, was news of AstraZeneca suspending its coronavirus vaccine.
AstraZeneca has been working with Oxford University on a coronavirus vaccine that Trump was looking to fast track for the U.S.
While there were plenty of negatives, the negatives were not enough to reverse a bullish start to the week.
It was a quieter week on the Eurozone economic calendar.
In the 1st half of the week, industrial production and trade figures from Germany delivered mixed results.
While industrial production rose by 1.2%, economists had forecast a 4.7% rise off the back of a 9.3% jump in June.
Trade figures were more upbeat, however, with Germany’s trade surplus widening from €14.5bn to €18.0bn in July.
According to Destatis,
- Exports rose by 4.7% from the previous month, while down by 11% on the same month a year earlier.
- Imports rose by 1.1% from the previous month and were down by 11.3% from the same month a year earlier.
- In July 2020, Germany exported goods to the value of €52.4bn to EU member states, while importing goods to the value of €44.4bn.
- Goods to the value of €36.8bn (-10.7%) were exported to the euro area countries, while goods imported fell by 13.1% to €30.1bn.
- Exports to EU countries outside of the EU fell 7% to €15.6bn, while imports fell 4.2% to €14.3bn.
- To countries outside of the EU, exports fell 12.5% to €49.9bn, with imports falling by 1.2% to €38.7bn.
From the Eurozone, an upward revision to 2nd quarter GDP numbers was not enough to prevent a U.S driven sell-off on the day.
The focus then shifted to ECB monetary policy decision and press conference on Thursday.
With the ECB holding monetary policy unchanged, the majors came under pressure on Thursday. An upward revision to growth forecasts suggested that there would unlikely be any further easing near-term.
There was also a spike in the EUR, during the press conference that also added downward pressure on the majors.
From the U.S
It was a relatively positive week on the economic data front.
Wholesale inflationary pressures softened less than had been anticipated in August. The core annual rate of inflation picked up from 1.6% to 1.7%, with consumer prices rising by more than expected in August.
On the negative, however, were the initial jobless claims figures. In the week ending 4th September, jobless claims stood at 884k. While unchanged from the previous week, economists had forecast claims to come in at 846k.
The Market Movers
From the DAX, it was a mixed week for the auto sector. Continental fell by 2.46% to buck the trend for the week. BMW and Volkswagen rose by 3.63% and by 3.89% respectively, with Daimler rallying by 5.50%.
It was a bearish week for the banking sector, however. Commerzbank slid by 6.06%, with Deutsche Bank falling by 4.74%.
From the CAC, it was a bearish week for the banks. Continental slid by 6.07% to lead the way down. BNP Paribas and Credit Agricole saw more modest losses of 2.98% and 1.73% respectively.
The French auto sector found further support in the week. Peugeot and Renault rose by 6.07% and by 0.04% respectively.
Air France-KLM and Airbus saw red, however, with the pair falling by 3.31% and by 1.38% respectively.