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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 turning red for the third time in a row.

The DAX30 lost 0.27%, while the CAC40 and the EuroStoxx600 suffered slight losses of 0.10% and 0.01% respectively.

A calm economic calendar left the majors in the hands of COVID-19 news updates before consumer sentiment in the eurozone was released towards the end of the session.

Weaker consumer confidence amid rising COVID-19 cases and new restrictions weighed on the day. However, the re -pointment of Fed chairman Powell as Fed chairman limited the damage.

The statistics

According to the EU Commission, consumer confidence in the euro zone fell from -4.8 to -6.8 in November. Economists had forecast a drop to -5.5.

From the USA

The economic data was limited to numbers from the housing sector, which had only a muted impact on the majors.

The market movers

For the DAX: It was a mixed day for the auto industry on Monday. Volkswagen fell 0.71% to counter the trend of the day. BMW increased by 1.75%, but with Daimler and Continental Increase of 1.35% and 1.32% respectively.

It was a mixed day for the banks too. Deutsche Bank 0.37% increased while Commerzbank slipped 0.66%.

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

However, the French auto sector had a mixed session. Stellantis NV decreased by 1.12% while Renault ended the day by 0.80%.

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

On the VIX index

For the VIX on Monday, it was in the green for the fourth day in a row.

After rising 1.82% on Friday, the VIX rose 7.04% to end the day at 19.17.

The Dow rose 0.05% while the NASDAQ and S & P500 lost 1.26% and 0.32%, respectively.

The day ahead

A particularly busy day is ahead of the euro area’s economic calendar. The focus is on preliminary November PMIs for the private sector for France, Germany and the euro zone.

We can expect a great deal of market sensitivity for today’s numbers. While the headline numbers generate interest, components of the PMIs will be crucial.

The focus of the market is likely to be on cost pressures, incoming orders and delivery times.

From the US, the November private sector PMIs will also be in focus later in the session.

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

Aside from the economic calendar, COVID-19 news updates also need to be monitored.

The future

On the futures markets, the Dow Mini was up 48 points at the time of going to press.

You can find an overview of all today’s economic events in our economic calendar.

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