Economic data and the ECB at a glance
Thursday, 9e September
German trade balance (Jul)
ECB decision on interest rates (August)
ECB press conference
friday 10e September
German CPI (MoM) (August) Final
It was another bearish day for the European majors on Wednesday.
The DAX30 and EuroStoxx600 were down 1.47% and 1.06% respectively, with the CAC40 ending the day down 0.85%.
Eurozone economic data was lighter, leaving Tuesday’s negative sentiment to persist.
Concerns about the resilience of the economic recovery weighed on the majors ahead of the ECB’s monetary policy decision today.
The way the ECB is responding to inflationary pressures, previously seen as transitory, has also left markets on unstable ground.
According to preliminary figures, the euro zone’s annual inflation rate accelerated from 2.2% to 3.0% in August…
French non-agricultural payrolls were the center of attention at the start of the session.
In the 2sd quarter, the non-farm workforce increased 1.1% quarter-on-quarter. In the previous quarter, the payroll had increased by 1.2%.
The United States
JOLT’s job vacancies were the focus of attention at the end of the European session.
In July, vacancies rose from 10.185 million to 10.934 million in July, well in excess of the 10,000 million forecast.
The numbers have failed to change the mood, however.
For the DAX: It was a bearish day for the auto sector on Wednesday. Volkswagen slipped 3.05% to lead the way, with Daimler end the day down 2.44%. Bmw and Continental both fell by 2.35% respectively.
It was also a bearish day for the banks. German Bank and Commercial bank recorded losses of 0.46% and 2.35% respectively.
From CAC, it was a bearish day for the banks. BNP Paribas and Agricultural credit 1.53% and 1.29% respectively, with Gen Soc end the day down 2.11%.
Things were not much better for the French automotive sector. Stellantis SA decreased by 2.86%, with Renault down 0.82%.
Air France-KLM reversed the trend with an increase of 0.64%, while Airbus SE decreased by 0.33%.
On the VIX index
He was back in the red on the VIX on Wednesday.
After jumping 10.54% on Tuesday, the VIX fell 0.99% to end the day at 17.96.
On Tuesday, the NASDAQ was down 0.57%, with the Dow Jones and S & P500 ending the day down 0.20% and 0.13% respectively.
The day to come
It is a busier day in the economic calendar for the euro area.
Germany’s trade data will generate interest early in the session. While we can expect market sensitivity to numbers, the ECB will be the main area of focus for the day.
Later today, the ECB will deliver its 1st political decision of the last quarter of the year. While the markets expect a reduction in the asset purchase program, there is some uncertainty about other policy measures.
There has been a lot of hawkish gossip amid the lingering inflationary pressure. However, economic uncertainty persists due to the Delta variant.
In the United States, jobless claims will also have an influence, although the publication coincides with Lagarde’s press conference.
In the futures markets, at the time of writing, the Dow Mini was down 12 points.
For an overview of all of today’s economic events, check out our economic calendar.
This article originally appeared on FX Empire