Economic data, ECB and corporate results at a glance
Thursday, 22nd April
Deposit facility rate (April)
ECB decision on interest rates (April)
Flash of consumer confidence in the euro zone
Friday 23rd April
French manufacturing PMI (April) Prelim
French Services PMI (April) Prelim
German manufacturing PMI (April) Prelim
German services PMI (April) Prelim
Euro zone manufacturing PMI (April) Prelim
Eurozone Markit composite PMI (April) Prelim
Eurozone services PMI (April) Prelim
ECB President Lagarde speaks
The European majors were in recovery mode after the strong liquidation on Wednesday.
In the lead, the CAC40, which rose 0.74%. The DAX30 and EuroStoxx600 posted more modest gains of 0.44% and 0.65% respectively.
There were no major statistics from the Eurozone or the United States to provide support, leaving company profits and declining purchases to provide support.
Concerns over the latest spike in new COVID-19 cases, however, have prevented the majors from a more meaningful recovery.
It was a particularly quiet day on the economic calendar on Wednesday.
There were no hard euro area statistics to give direction to European majors midweek.
The United States
It was another particularly quiet day, with no major statistics to guide the majors at the end of the day.
For the DAX: It was a mixed day for the auto industry on Wednesday. Volkswagen slipped 2.44% with Daimler and Bmw down 0.46% and 1.18% respectively. Continental however resisted the trend, increasing 0.61%.
It was another bearish day for the banks. German Bank decrease of 0.43%, with Commerzbank down 0.85%.
From CAC, it was a bearish day for the banks. BNP Paribas and Soc Gen decreased by 0.92% and 0.91% respectively, with Agricultural credit down 0.87%.
The French, however, found support. Stellantis NV increased by 2.25%, with Renault ending the day up 0.10%.
Air France-KLM partially recovered from Tuesday’s 6.10% drop with a 1.00% gain, while Airbus SE slipped 0.21%.
On the VIX index
He was back in the red for the VIX on Wednesday, scoring a 4e daily loss in 8 sessions.
Partially reversing an 8.04% decline from Tuesday, the VIX was down 6.32% to end the day at 17.50.
The Dow and the S & P500 rose 0.93% respectively, with the NASDAQ gaining 1.19%.
The day ahead
It’s a relatively calm day ahead on the European economic data front. Key Eurozone statistics include French business confidence and Eurozone consumer confidence flash numbers.
Expect Eurozone consumer confidence figures to have a bigger impact on the day.
The main event of the day, however, will be the press conference on the ECB’s monetary policy.
With markets expecting the ECB to step up its bond purchases, updates on buying will be essential. Failure to impress will test the support of the majors.
Markets will also look for any changes in the economic outlook following the new surge in new cases of COVID-19.
In the United States, weekly jobless claims figures will also have an influence. Any reaction to the numbers may be delayed, however, as the release coincides with the ECB press conference.
Away from the economic calendar, COVID-19 news updates and corporate earnings will also need to be monitored.
On the corporate earnings front, Renault and Nestlé are expected to release their results later today.
In the futures markets, at the time of writing, the Dow Mini was down 52 points.
For an overview of all of today’s economic events, check out our economic calendar.
This article originally appeared on FX Empire