European Equities – German Industrial Production and Trade in Focus

The Majors

It was a relatively bullish day for the European majors on Thursday, after Wednesday’s relatively bearish session.

The CAC40 and the EuroStoxx600 rose by 0.57% and by 0.58% respectively, with the DAX30 gaining by 0.17%.

It was fresh highs for the majors on Thursday, with the FOMC meeting minutes from late Wednesday delivering support.

Following the FOMC economic projections and FED Chair Powell’s testimonies, the minutes reaffirmed Powell’s assurances. Low for longer was good enough to drive the European majors to fresh record highs.

The ECB meeting minutes also affirmed the intent to ramp up bond purchases near-term to address rising yields.

The Stats

It was a quiet day on the economic calendar on Thursday. The German economy was back in focus with factory orders in focus.

In February, factory orders increased by 1.2% month-on-month, which was in line with forecasts. In January, orders had risen by 1.4%.

According to Destatis,

  • Domestic orders increased by 4.0%, while foreign orders slipped by 0.5% in the month.
  • New orders from the euro area rose by 2.7%, while new orders from other countries slid by 2.3%.
  • Manufacturers of intermediate goods saw new orders increase by 0.5%, with orders for capital goods rising by 2.1%.
  • New orders for consumer goods fell by 1.9%, however.
  • When compared with February 2020, new orders were up 5.6%.

On the monetary policy front, the ECB monetary policy meeting minutes were also in focus.

Salient points from the monetary policy considerations and policy options included:

  • While the overall economic situation would improve throughout 2021, uncertainty in the euro area remained high.
  • Persistently high rates of COVID-19 infection, the spread of virus mutations, and the speed of vaccination campaigns remain key issues.
  • Looking beyond the short-term weakness, euro area economic activity was expected to gain momentum in the course of the year.
  • Over the medium-term the recovery should be supported by favorable financial conditions, an expansionary fiscal stance, and a recovery in demand as containment measures were gradually lifted.
  • Vis-à-vis managing rising government bond yields and borrowing costs, the ECB proposed that net purchases under the PEPP be increased significantly over the next quarter.
  • The ECB should review the purchase pace on a quarterly basis.
  • Additionally, the Governing Council reiterated that it stood ready to adjust all of its instruments to ensure inflation moved towards its aim in a sustained manner.

From the U.S

It was another quiet day on the economic calendar, with economic data limited to weekly jobless claim figures.

In the week ending 2nd April, initial jobless claims rose from a previous week 728k to 744k.

Economists had forecast a fall to 680k.

The Market Movers

For the DAX: It was a bearish day for the auto sector on Thursday. Continental and Daimler slid by 1.62% and by 1.47% respectively, with Volkswagen falling by 0.97%. BMW ended the day with a more modest 0.79% loss.

It was also a bearish day for the banks. Deutsche Bank and Commerzbank fell by 1.05% and by 1.88% respectively.

From the CAC, it was a mixed day for the banks. BNP Paribas and Soc Gen ended the day down by 0.55% and by 1.83% respectively. Credit Agricole found support, however, gaining 0.21%.

It was a particularly bearish day for the French auto sector, however. Stellantis NV fell by 2.30%, with Renault sliding by 3.47%.

Air France-KLM gave up some of Wednesday’s gains with a 3.17% loss, while Airbus SE eked out a 0.26% gain.

On the VIX Index

It was a 2nd consecutive day in the red for the VIX on Thursday.

Following on from a 5.3% slide on Wednesday, the VIX fell by 1.22% to end the day at 16.95.

The NASDAQ rose by 1.03%, with the Dow and the S&P500 gaining 0.17% and 0.42% respectively.

Source link

0 0 voter
Article Rating

Notifier de
0 Commentaires
Commentaires en ligne
Afficher tous les commentaires
Reset Password

Avertissement sur les risques :

Le trading peut vous exposer à des risques de pertes supérieures aux dépôts et ne convient qu’à une clientèle avisée ayant les moyens financiers de supporter un tel risque. Les CFD sont des instruments complexes et présentent un risque élevé de perte rapide en capital en raison de l’effet de levier. Entre 74 et 89% des comptes de clients de détail perdent de l’argent lors de la négociation de CFD. Vous devez vous assurer que vous comprenez comment les CFD fonctionnent et que vous pouvez vous permettre de prendre le risque élevé de perdre votre argent. Ce site n’est en aucun cas une offre de conseil en investissement ni une incitation quelconque à acheter ou vendre des instruments financiers. Trader le Forex et/ou les CFD’s implique un niveau de risque élevé, et peut ne pas être approprié car vous pouvez subir des pertes supérieures à votre dépôt. L’effet de levier peut être en votre défaveur.

Vous devez être conscient et avoir une compréhension complète de tous les risques associés au marché et au trading. Le site peut être amené à produire des commentaires d’ordre général, ce qui ne constitue pas des conseils en investissement et ne doit pas être interprété comme tel.

Veuillez recourir aux conseils d’un conseiller financier extérieur. Le site décline toute responsabilité pour les erreurs, inexactitudes ou omissions et ne garantit pas l’exactitude ou le caractère complet des informations, textes, graphiques, liens ou autres éléments contenus dans cette documentation. Toute information et toute mise à disposition sur le site ont un caractère privé.