Equities

November Private Sector PMIs in Focus

The Majors

It was a bearish start to the week for the European majors on Monday, with the EuroStoxx600 seeing red for the 3rd session in a row.

The DAX30 fell by 0.27%, with the CAC40 and the EuroStoxx600 seeing modest losses of 0.10% and 0.01% respectively.

A quiet economic calendar left the majors in the hands of COVID-19 news updates ahead of Eurozone consumer sentiment figures late in the session.

Weaker consumer confidence amidst rising COVID-19 cases and new restrictions weighed on the day. FED Chair Powell’s reappointment as FED Chair limited the damage, however.

The Stats

According to the EU Commission, consumer confidence across the Eurozone fell from -4.8 to -6.8 in November. Economists had forecast a fall to -5.5.

From the U.S

Economic data was limited to housing sector numbers that had a muted impact on the majors.

The Market Movers

For the DAX: It was a mixed day for the auto sector on Monday. Volkswagen fell by 0.71% to buck the trend on the day. BMW rallied by 1.75%, however, with Daimler and Continental rising by 1.35% and by 1.32% respectively.

It was also a mixed day for the banks. Deutsche Bank gained 0.37%, while Commerzbank slipped by 0.66%.

From the CAC, it was a bullish day for the banks. Credit Agricole rallied by 1.96%, with BNP Paribas and Soc Gen seeing gains of 1.59% and 1.42% respectively.

The French auto sector had a mixed session, however. Stellantis NV fell by 1.12%, while Renault ended the day up by 0.80%.

Air France-KLM and Airbus SE saw relatively modest losses of 0.74% and 0.57% respectively.

On the VIX Index

It was a 4th consecutive day in the green for the VIX on Monday.

Following a 1.82% gain on Friday, the VIX rose by 7.04% to end the day at 19.17.

The Dow rose by 0.05%, while the NASDAQ and the S&P500 saw losses of 1.26% and 0.32% respectively.

The Day Ahead

It’s a particularly busy day ahead on the Eurozone’s economic calendar. Prelim November private sector PMIs for France, Germany, and the Eurozone will be in focus.

We can expect plenty of market sensitivity to today’s numbers. While the headline figures will draw interest, components of the PMIs will be key.

Market focus will likely remain on cost pressures, new orders, and delivery times.

From the U.S, private sector PMIs for November will also be in focus later in the session.

Expect the U.S services PMI to be the key stat late in the day.

Away from the economic calendar, COVID-19 news updates will also need monitoring.

The Futures

In the futures markets, at the time of writing, the Dow Mini was up by 48 points.

For a look at all of today’s economic events, check out our economic calendar.


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