It was a mixed day for the European majors on Tuesday. The CAC40 rose by 0.21%, while the CAC30 and EuroStoxx600 fell by 0.04% and by 0.25% respectively.
Following the market reaction to Moderna Inc.’s vaccine results on Monday, investors hit pause.
With the vaccine unlikely to be widely available until after the winter, the focus returned to near-term economic woes.
Containment measures to stem the spread of the 2nd wave weighed on risk appetite. Any hopes of a continued economic recovery through the remainder of the year have been dashed by the latest lockdown measures.
It was a particularly quiet day on the Eurozone economic calendar. There were no material stats from the Eurozone to provide the majors with direction.
From the U.S
It was a busier day on the economic calendar. Key stats included October retail sales and industrial production figures.
In October, core retail sales rose by just 0.2%, month-on-month, following a 1.2% jump in September. Retail sales rose by 0.3%, following a 1.6% rise in September. Economists had forecasted increases of 0.6% and 0.5% respectively.
Month-on-month, industrial production rose by 1.1%, reversing a 0.4% decline from September. Economists had forecast a 1% rise.
Other stats on the day included import and export price and business inventory numbers that the markets brushed aside.
The Market Movers
For the DAX: It was another bullish day for the auto sector on Tuesday. Continental and Daimler rose by 1.41% and by 1.66% respectively to lead the way. BMW and Volkswagen both saw more modest gains of 0.57%.
It was also a bullish day for the banks. Deutsche Bank rose by 0.19%, with Commerzbank gaining 1.12%.
From the CAC, it was another relatively bullish day for the banks, with BNP Paribas and Credit Agricole rising by 0.80% and by 0.32% respectively. Soc Gen ended the day up by 1.31%, however, to lead the way once more.
It was also another positive day for the French auto sector. Peugeot eked out a 0.03% gain, with Renault rising by 0.52%.
Air France-KLM slipped by 0.14% following Monday’s 11.71% COVID-19 vaccine fuelled surge, while Airbus SE rose by 0.10%.
On the VIX Index
It was back into the green for the VIX on Tuesday, marking just a 4th daily gain from fourteen. Partially reversing a 2.81% fall on Monday, the VIX rose by 1.16% to end the day at 22.71.
On Tuesday, the Dow fell by 0.56%, with the NASDAQ and the S&P500 seeing losses of 0.21% and 0.48% respectively.