“O.itemList.length” “- this.config.text.ariaShown
“This.config.text.ariaFermé”
Spanish CPI (year-on-year) (July) Final
Spanish IPCA (YoY) (July) Final
French CPI (Monthly) (July) Final
French IPCH (MoM) (July) Final
Euro GDP (year-on-year) (2Q) Estimate 2d
Euro GDP (quarterly) (second quarter) estimate 2d
Industrial balance of the euro (June)
It’s another bullish day for the biggest Europeans on Wednesday. The EuroStoxx600 ended the day with a 1.11% hike to lead the way, with the CAC40 and DAX30 gaining 0.86% and 0.90% respectively.
The advantages of the day came here despite the continued accumulation of new instances of COVID-19. New Zealand reported its first cases in more than 3 months, and France also reported an increase in new cases. Germany has also noticed a significant increase, furthering the risk of a larger wave of the pandemic.
From the United States, there have been no additional discussions to break the stalemate in the COVID-19 aid package, which is also negative for the big ones.
Better-than-expected economic knowledge in recent weeks and corporate profits were once again the main drivers.
On the front lines of corporate profits, ABN Amro appeared on the cover, with a 7.4% jump thanks to the best-than-expected effects in the current quarter.
It was a quiet day on the economic calendar of euro leaders. Key statistics included the euro-leading commercial production figures for June and the latest inflation figures for Italy in July.
According to Eurostat,
The industrial production building rose 9.1% in June after a 6.2% increase in May. Economists had forecast a 9.2% increase.
Production of durable consumer goods jumped by 20.2%, with the production of capital goods up by 14.2%.
Slovakia recorded the largest accumulation (up to 21.7%), while Belgium experienced the largest reduction (-1.4%).
However, year-on-year production fell by 12.3%.
Compared to June 2019, the declines were recorded in Portugal (-14.8%), Germany and Spain (both -14.1%) Italy (-13.7%).
Italy’s consumer fell 0.2% in July, according to the figures completed, below an initial decline of 0.1%.
In July, the underlying annual inflation rate rose from 1.2% to 1.6%. The basic customer and customer rose 0.6% in July.
However, the resumption of inflationary pressures is highly unlikely to have an effect on financial policy. Labour market situations are likely to continue to reduce inflation.
For the DAX: it was another bullish day for the automotive sector on Wednesday. Continental and Daimler climbed 2.06% and 2.11% respectively to lead the way. BMW and Volkswagen were not left with 1.63% and 1.55% profits respectively.
It’s also another bullish day for the banks. Deutsche Bank up 1.32%, Commerzbank gained 0.49%.
On the CAC side, it’s a bullish day for banks. Crédit Agricole and Soc Gen recorded gains of 0.64% and 0.72% respectively, with BNP Paribas rising 0.89%.
However, it is a combined day for the French automotive sector. Peugeot fell 0.38%, while Renault closed the day with a 0.86% hike.
Air France-KLM yielded Tuesday’s profit, up 2.40% less, and Airbus SE recorded a 1.65% loss on the day.
It’s red again for the VIX on Wednesday. A drop of 7.28% marked an eighth day in red numbers of 9. By reversing a partial accumulation of 8.59% compared to Tuesday, the VIX ended the day at 22.28.
Despite the continued lack of progress in the COVID-19 support plan, economic knowledge and the decline in COVID-19 cases in the United States are supported.
The S-P500 and Dow recorded gains of 1.40% and 1.05% respectively, while the NASDAQ recovered 2.13%.
It’s another quiet day before the eurozone’s economic calendar. The main statistics come with the inflation figures completed for Germany and Spain in July.
Unless there are disastrous figures, statistics are expected to have a moderate effect on the main ones.
From the United States, figures from the July import and export value index and weekly unemployed records are expected.
Expect a lot of influence from the unemployment call to get numbers. After last week’s fall, markets will want another sharp drop in riskier assets.
Away from the calendar, COVID-19, geopolitics and Capitol updates will remain the focus.
While there is hope for further progress towards a vaccine, a continued upward trend in new coVID-19 instances can frighten markets.
In futures markets, at the time of writing, the Dow Jones rose 18 points.
For a review of all of today’s economic events, check out our economic calendar.
This article was originally published on FX Empire
S-P 500 price forecasts: stock markets continue to reach historic highs again
USD/JPY Price Forecast: US Dollar Targets Resistance
European equities: weekly unemployment applications in the United States, COVID-19 and geopolitics in a nutshell
Money Price Forecasts: Money Markets Find Stability
Hyper-chaotic expectations may be just expectations of recovery