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A calm economic calendar keeps oil and central bank talks in focus

The majors

It was a bearish end of the week for the European majors on Friday.

The CAC40 lost 0.61%, while the DAX30 and EuroStoxx600 lost 0.29% and 0.28%, respectively.

While the economic data from Germany disappointed again, worries in the market about inflation and weak US labor market data weighed the most.

The statistics

The focus was again on the German economy at the end of the week.

The German economy

In August Germany’s trade surplus fell from 17.7 billion euros to 13.0 billion euros. Economists had forecast a narrowing to 15.8 billion euros.

According to Destatis

  • German exports decreased by 1.2% compared to July 2021, while imports increased by 3.5%.
  • In August 2021, goods exports rose year-on-year by 14.4% to 104.4 billion euros.
  • Imports rose by 18.1% to € 93.8 billion.

Trade with EU countries

  • German exports to the EU member states rose by 15.7%, while imports from the EU member states rose by 11.2%.
  • Exports to euro area countries rose by 16.9%, while imports from euro area countries rose by 13.5%.

Trade with non-EU countries

  • Exports of goods to countries outside the EU increased by 13.1%, while imports increased by 25.9%.

With other countries

  • Exports to the UK fell 15.1% while imports from the UK fell 7.9%.

However, exports to China rose 4.4%, while exports to the US rose 22.4%.

From the USA

The labor market numbers were the main stats of the day, with disappointing numbers.

In September, the number of employees outside the agricultural sector rose by only 194,000 and thus remained well below the forecast increase of 500,000.

The unemployment rate fell from 5.2% to 4.8%, with a decrease in the employment rate from 61.7% to 61.6%.

The market movers

For the DAX: It was a mixed day for the auto industry on Friday. Volkswagen bucked the trend, falling 0.74%. Continental and Daimler however rose 2.91% and 2.34% respectively to take the lead. BMW rose a more modest 1.13%.

It was a bullish day for banks. Deutsche Bank rose 0.48%, with Commerzbank up 1.07% at the end of the day.

From the CAC, it was a mixed day for the banks. BNP Paribas decreased by 0.16% while Credit Agricole and Soc Gen ended the day up 0.30% and 0.11% respectively.

However, it was a bullish day for the French auto sector. Stellantis NV increased by 0.62%, with Renault ended the day up 2.33%.

Air France-KLM increased by 0.20% while Airbus SE down by 0.86%.

On the VIX index

It was the fourth straight day in the red for the VIX on Friday.

After falling 6.95% on Thursday, the VIX lost 3.94% to end the day at 18.77.

The NASDAQ fell 0.51% while the Dow and S&P500 lost 0.03% and 0.19%, respectively, for the day.

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