Economic data of Germany and the United States and the FED at a glance
Thursday, 26e August
German consumer climate GfK (Sept.)
It was another mixed day for European majors on Wednesday.
The DAX30 fell 0.28%, while the CAC40 and EuroStoxx600 gained 0.18% and 0.01% respectively.
Economic data was lighter, with the German economy once again in the center of attention. The disappointing business climate figures in Germany weighed on the DAX30.
With the Jackson Hole Symposium kicking off today, there was also a lot of caution, bringing the majors together.
While the markets are betting that the Fed will accelerate policy, it is not a certainty on the reduction front.
The increase in delta variant cases around the world has also raised concerns about the economic outlook as some economies lag behind vaccination rates.
It was a quieter economic calendar throughout the European session.
Germany’s IFO Business Climate Index figures were the center of attention at the start of the session.
In August, the Business IFO business climate index fell from 100.7 to 99.4. Economists were forecasting a drop to 100.4.
The decline came despite a recovery in business sentiment towards the current situation. In August, the Current Assessment sub-index fell from 100.4 to 101.4.
Business expectations, which fell from 101.0 to 97.5, weighed on the overall figure.
According to the August survey,
In the manufacturing sector, the business climate has deteriorated significantly. The assessment of the current situation is less positive. While businesses were still happy with current affairs, the outlook for the coming months turned around. The wait indicator fell to its lowest level since November 2020.
For the service sector, optimism about the future development of business has been tempered. In contrast, companies felt that the current situation was better than the previous month.
Traders were less satisfied with their current trading situation. In addition, pessimism has returned when it comes to expectations. The retail sector was particularly concerned about the coming months.
The United States
Durable goods and core durable goods orders also influenced.
Durable goods orders fell 0.1% in July, partially offsetting a 0.9% increase from June. Economists were forecasting a drop of 0.3%. Basic durable goods, however, rose 0.7%, compared to an expected increase of 0.5%. In June, basic durable goods rose 0.6%.
For the DAX: Wednesday was a mixed day for the automotive sector. Bmw and Continental decreased by 0.57% and 0.17% respectively. Volkswagen and Daimler ended the day up 0.40% and 0.09% respectively.
It was, however, a bullish day for the banks. German Bank and Commercial bank increased by 1.36% and 2.45% respectively.
From CAC, it was a bullish day for the banks. BNP Paribas and Gen Soc recovered by 2.04% and 2.44% respectively, with Agricultural credit gaining 1.38%.
It was also a relatively bullish day for the French automotive sector. Stellantis SA and Renault saw modest gains of 0.55% and 0.22% respectively.
Air France-KLM fell by 0.36%, while Airbus SE increased by 2.17%.
On the VIX index
He returned to the red for the VIX on Wednesday, scoring a 3rd day in the red from 4 sessions.
Reversing a 0.40% rise on Tuesday, the VIX fell 2.50% to end the day at 16.79.
The S & P500 rose 0.22%, with the Dow Jones and NASDAQ ending the day up 0.11% and 0.15% respectively.
The day to come
It’s a relatively calm day ahead on the eurozone economic calendar. The consumer confidence figures for Germany will be the center of attention at the start of the session.
While the numbers will provide direction for the DAX30, we can expect the markets to be timid heading into the Symposium.
Later today, the first jobless claims and US GDP figures will provide direction to the majors.
With the launch of the Symposium, a marked drop in jobless claims could test the market’s accommodative bets …
Ultimately, all the chatter from the Symposium will be the main driver of the day.
In the futures markets, at the time of writing, the Dow Mini was up 21 points.
For an overview of all of today’s economic events, check out our economic calendar.
This article originally appeared on FX Empire