Economic data for Germany and the United States at a glance
It was another mixed day for European majors on Wednesday.
The DAX30 slipped 0.09%, while the CAC40 and EuroStoxx600 posted gains of 0.02% and 0.03% respectively.
With the economic data lighter, discussions by FOMC members about whether to start considering phasing out the asset purchase program have entrenched the majors.
On the other hand, assurances from the ECB that it is too early to start considering such a reduction have provided support.
A recovery in the confidence of French businesses and consumers reinforced the support of the CAC40.
Eurozone economic data included business and consumer confidence figures in France.
The business climate survey indicator for the manufacturing sector fell from 104 to 107 in May. Economists had forecast an increase to 106.0.
According to Insee.Fr,
- The increase was attributed to an increase in balances of opinion on production prospects and order books.
- In the service sector, the business climate index fell from 92 to 107.
- For the retail sector, the increase was more impressive by 17 points to 107. The jump was fueled by sentiment for the near future, possibly due to the reopening of the economy.
- Employment conditions have also improved, with the employment climate falling from 92 to 100.
Consumer confidence also improved, with the consumer confidence indicator rising from 95 to 97 in May. Economists had forecast an increase to 97.
According to Insee.Fr,
- Household confidence in the economy has remained below its long-term average of 100.
- In relation to their future financial situation, the balance of opinion of households increased by 3 points to exceed its long-term average.
- The share of households who felt the time was right to make major purchases remained stable and remained above its long-term average.
- Among households that consider the time to be a good time to save, the share declined after reaching an all-time high in April.
The United States
There were no hard statistics to give direction to the European majors at the end of the day.
For the DAX: It was a bullish day for the auto industry on Wednesday. Daimler increased by 1.10% to lead the way, with Bmw and Continental up 0.67% and 0.47% respectively. Volkswagen ended the day with a more modest gain of 0.18%.
It was a mixed day for the banks. German Bank increased by 0.53%, while Commerzbank slipped 2.21%.
From CAC, it was a bearish day for the banks. BNP Paribas and Agricultural credit ended the day down 1.35% and 1.14% respectively. Soc Gen however led to the decline, with a decline of 2.12%.
It was, however, a relatively bullish day for the French automotive sector. Stellantis NV and Renault ended the day with gains of 0.01% and 0.65% respectively.
Air France-KLM decreased by 1.33%, while Airbus SE increased by 0.55%.
On the VIX index
He was back in the red for the VIX on Wednesday, scoring a 4e day in the red from 5 sessions.
Reversing a 2.39% rise from Tuesday, the VIX was down 7.91% to end the day at 17.35.
The NASDAQ rose 0.59%, with the Dow and S & P500 ending the day with modest gains of 0.03% and 0.19% respectively.