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It’s a combined month for The European Major Leagues, with a sale last week canceling the profits at the beginning of the month.
The DAX30 ended the month with only 0.02%, while cac40 and EuroStoxx600 fell 3.49% and 2.98% respectively.
The disappointing economic knowledge of the euro and the United States, combined with a combined stock market on the front of the profits, weighed at the end of the month.
Far from the economic calendar, tensions between the United States and China and a wave of the COVID-19 pandemic added to market anxiety.
For the largest Europeans, the agreement of the EU Member States on the design of the COVID-19 stimulus fund had some support.
Combined with reports of progress towards a COVID-19 vaccine and positive economic data, the DAX30 increased by up to 7% before falling to degrees below 13,000.
It is a busy month in the economic calendar of the euro area. Preliminary personal sector PMI for July and quarterly GDP were the most important statistics of the month.
While June presented a less bleak image, July delivered a set of combined statistics to be taken into account across markets.
Earlier this month, Germany’s economic knowledge continued to provide figures, with factory orders and commercial production emerging even more.
The personal sector PMI in France, Germany and the euro by July also gave a boost to the majors.
The euro compound PMI increased from 48.5 to 54.8, according to initial figures.
At the end of the month, however, the quarter’s GDP figures for France, Germany and the euro weighed on the main ones.
The German economy contracted through 10.10%, France through 13.80% and dominance of the euro through 12.10% in the quarter.
While non-agricultural payroll, weekly unemployment programmes and personal sector PMI figures provided at the beginning of the month, weekly unemployment records, customer confidence and second quarter GDP weighed at the end of the month.
Two consecutive weekly increases in unemployed records and a 32.9% contraction in the U.S. economy weighed on appetite at the end of the month.
Consumer confidence weakened in July when the United States struggled with a momentary wave of the COVID-19 pandemic.
America’s geopolitics and failure. To pass the moment when the COVID-19 stimulus package was also negative for the market.
On the front lines of financial policy, it is not surprising because the ECB left financial policy unchanged. There were reports of discord among members prior to the meeting.
The Fed also left financial policy unchanged, while providing markets with continued and unwavering support.
For the DAX: it’s a bassist month for the automotive industry. Continental and Volkswagen fell 6.49% and 7.78% respectively to lead downwards. BMW and Daimler recorded more modest losses of 4.14% and 2.64% respectively.
However, it is a combined month for banks. Deutsche Bank fell 10.51%, while Commerzbank finished the month with an increase of 9.63%.
On the CAC side, it’s a bassist month for the banking sector. BNP Paribas and Crédit Agricole fell 3.53% and 3.56% respectively, while Soc Gen fell 12.30%.
It is also a bassist for the automotive sector. Peugeot down 5.80% and Renault 11.16%
Air France-KLM and Airbus SE saw red, with the pair registering losses of 13.49% and 2.38% respectively.
Corporate contributed to the movements.
The VIX fell 19.62% in July, delivering a third month in red of 4. Investing an accumulation of 10.61% in June, the VIX ended the month at 24.46.
The VIX had experienced four consecutive months in green before the downward trend began in April.
In the U.S. equity markets, the S-P500 rose 5.51%, with the Dow and NasdaQ gaining 2.38% and 6.82%, respectively.
Fed earnings and bank and generation stocks provided assistance in an increasing number of new COVID-19 instances during the month.
This is the busy month of the eurozone’s economic calendar.
An upward trend in personal sector MIPs through August continues to alleviate fears of an additional slowdown in recovery.
Markets deserve to continue to see an additional recovery in the confidence of businesses and consumer customers.
However, consumers should see an improvement in labour market situations to fuel their consumption and an sector-driven economic recovery.
On the front lines of financial policy, expect the ECB to continue to provide more market support.
In fact, we continue to expect statistics from the United States and China to also attract a lot of attention and influence.
Geopolitics and COVID-19 will also remain at the heart of concerns. In July, Trump tried to distract American voters, leading to a diplomatic dispute with China. More of the same can be on cards in the next month.
On the presidential front, Trump remains at the polls, suggesting more twist and distraction. In the last week of July, Trump even tweeted a preference for delaying the presidential election.
This article was originally published on FX Empire.
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