Focus on the ZEW economic climate figures in Germany and the euro zone
It was a bullish start to the week for European majors on Monday. The DAX rose 0.32%, with the CAC40 and EuroStoxx600 ending the day with gains of 0.82% and 0.70% respectively.
Economic data was lighter, with Eurozone data having a moderate impact on the majors.
Economic data from China provided support on the day, with better than expected GDP figures. In the 4and quarter, China’s economy grew 1.6% quarter-on-quarter vs. 1.1% expected. The economy grew 0.2% in the previous quarter. Year-on-year, the economy grew by 4.9% against a forecast of 4.8%. In the 3rd quarter, the economy grew 5.2% year-on-year.
Industrial production was also on the rise. Over one year, industrial production increased by 4.3% in December against 3.6% expected. Production rose 3.8% in November.
In Italy, consumer prices rose 0.4% in December, in line with preliminary figures. Consumer prices rose 0.6% in November.
The United States
There were no major statistics to provide direction late in the session as US markets were closed.
For the DAX: It was a mixed day for the automotive sector on Monday. Continental rose 0.59% to buck the trend. Daimler fell by 0.71%, with BMW and volkswagen ending the day down 0.30% and 0.27% respectively.
It was also a mixed day for banks. German Bank increased by 0.54%, while Commerzbank finished the day flat.
From the CAC, it was a mixed day for banks. Gen. Soc. increased by 0.35%, while Agricultural credit and BNP Paribas recorded losses of 0.36% and 0.38% respectively.
The French automotive sector had a bullish session. Stellantis SA and Renault ended the day with gains of 0.87% and 1.48% respectively.
Air France-KLM increased by 0.60%, while Airbus SE down 0.49%.
On the VIX index
US markets were closed on Monday.
The day to come
It’s a busier day ahead on the euro zone’s economic calendar. The ZEW Economic Sentiment numbers for Germany and the Eurozone will be in focus at the start of the European session. With little else to consider for the markets, expect the numbers to influence.
In the United States, figures from NY Empire State Manufacturing are expected. We don’t expect the stats to have an impact on the European majors.
After Monday’s US holiday, expect US majors to influence European majors later in the session.
In the futures markets, at the time of writing, the Dow Mini was up 12 points.
For an overview of all of today’s economic events, check out our economic calendar.