It was relatively bullish day for the majors on Tuesday.
The CAC40 rose by 0.81%, with the DAX30 and the EuroStoxx600 ending the day up by 0.55 and by 0.52% respectively.
A quiet day on the economic calendar allowed investors to buy the dip following Monday’s rout.
The upside was modest, however, with concerns over the economic outlook pegging the majors back on the day.
Wholesale inflation figures for Germany were in focus going into the European open.
In June, Germany’s annual wholesale rate of inflation accelerated from 7.2% to 8.5%. Economists had forecast a pick up to 8.3%.
Month-on-month, the producer price index rose by 1.3% following a 1.5% increase in May. Economists had forecast a 1.0% rise.
From the U.S
Housing sector figures for June were in focus that had a muted impact on the European majors.
In June, building permits fell by 5.1% to 1.598m, while housing starts rose by 6.3% to 1.643m.
Housing starts had risen by 2.1% in May, with building permits having fallen by 2.9%.
The Market Movers
For the DAX: It was a bullish day for the auto sector on Tuesday. Volkswagen and Daimler rose by 1.80% and by 1.52% respectively. BMW and Continental saw more modest gains of 1.15% and by 1.21% respectively.
It was also a bullish day for the banks. Deutsche Bank and Commerzbank ended the day up by 1.63% and by 1.07% respectively.
From the CAC, it was a bullish day for the banks. BNP Paribas rose by 1.89%, with Soc Gen and Credit Agricole gaining 1.43% and 1.50% respectively.
It was also a bullish day for the French auto sector. Stellantis NV and Renault ended the day up by 0.25% and by 0.80% respectively.
Air France-KLM rose by a modest 0.34%, with Airbus SE rallying by 2.34%.
On the VIX Index
It was back into the red for the VIX on Monday, ending a run of 3 consecutive days in the green.
Partially reversing a 21.95% jump from Friday, the VIX fell by 12.31% to end the day at 19.73.
The Dow rose by 1.62%, with the NASDAQ and the S&P500 ending the day up by 1.57% and by 1.52% respectively.