Equities

German Trade Data and Omicron News in Focus

The Majors

It was a bearish day for the European majors on Wednesday, with the losses coming in spite of gains across the Asian and U.S markets.

The CAC40 and DAX30 fell by 0.72% and by 0.80% respectively, with the EuroStoxx600 ending the day up by 0.50%.

Economic data from the Eurozone was limited to French nonfarm payrolls for the 3rd quarter, which failed to move the dial.

Omicron news continued to be the key driver, as news updates from around the world delivered investors mixed messages. While Pfizer and BioNTech announced that 3 doses of their vaccine deliver the necessary protection, news from South Africa contradicted Pfizer and BioNTech preliminary testing.

According to early lab test results from South Africa, the Pfizer vaccine could be reportedly 40 times less effective against the Omicron strain. This was enough to spook the markets despite early cases of new strain being reportedly milder.

The Stats

It was a quiet day on the Eurozone economic calendar. French nonfarm payrolls for the 3rd quarter were in focus.

Quarter-on-quarter, nonfarm payrolls increased by 0.4% in the 3rd quarter, following a 1.2% rise in the previous quarter. Economists had forecast a 0.5% rise. The stats had a muted impact on the majors, however.

From the U.S

JOLT’s job openings also failed to influence, in spite of upbeat numbers following the disappointing NFP figures from last week.

In October, openings rose from 10.602m to 11.033m. Economists had forecast a decline to 10.369m.

The Market Movers

For the DAX: It was a bearish day for the auto sector on Wednesday. Daimler led the way down, sliding by 1.15% with Continental falling by 0.16%. BMW and Volkswagen slipped by 0.03% and by 0.06% respectively.

It was also a bearish day for the banks. Deutsche Bank and Commerzbank saw losses of 0.26% and 1.44% respectively.

From the CAC, it was a mixed day for the banks. BNP Paribas and Credit Agricole fell by 0.22% and by 0.48% respectively, while Soc Gen rose by 0.76%.

The French auto sector also had a mixed session. Stellantis NV fell by 1.06%, while Renault ended the day up by 0.67%.

Air France-KLM and Airbus SE saw gains of 0.63% and 1.30% respectively.

On the VIX Index

It was a 3rd consecutive day in the red for the  VIX on Wednesday.

Following a 19.46% slump on Tuesday, the VIX fell by 9.09% to end the day at 19.90.

The NASDAQ rose by 0.64%, with the Dow and the S&P500 seeing gains of 0.10% and 0.31% respectively.


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