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Corporate earnings, COVID-19 and US statistics in focus

The majors

It was a bullish start to August for the European majors on Monday.

The CAC40 rose 0.95%, the DAX30 and EuroStoxx600 ended the day 0.16% and 0.59%, respectively.

Economic data from China and a sustained surge in cases of new Delta variants did not leave the majors in the red on Monday.

Positive economic data from the Eurozone provided support while rising Asian stocks supported the European majors.

The statistics

The July manufacturing PMI numbers were in focus at the beginning of the week, along with retail sales from Germany.

Retail sales

German retail sales rose 4.2% in June after rising 4.6% in May. Economists had forecast a more modest increase of 1.5%.

Member State PMIs

France, Italy and Spain saw weaker manufacturing growth in July.

Spain’s PMI fell from 60.4 to 59.0 while France and Italy’s PMI fell from 59.0 to 58.0 and 62.2 to 60.3, respectively.

Germany’s manufacturing PMI rose from 65.0 to 65.9, a preliminary increase of 65.6.

The Eurozone

For the euro zone, the manufacturing purchasing managers’ index fell from 63.4 to 62.8, a preliminary increase of 62.6.

From the USA

The manufacturing industry was also in focus.

In July, the market-preferred ISM manufacturing PMI fell from 60.6 to 59.6. Economists had forecast a drop to 60.4.

The market movers

For the DAX: It was a mixed day for the auto industry on Monday. Daimler and BMW posted gains of 1.57% and 1.17%, respectively, to take the lead. Continental increased by 0.37% while Volkswagen slid 0.02% to counter the trend of the day.

However, it was a bearish day for banks. Deutsche Bank and Commerzbank decreased by 1.64% and 0.51%, respectively.

From the CAC, it was a mixed day for the banks. BNP Paribas and Credit Agricole decreased by 0.97% and 0.31% respectively. Soc Gen against the trend, however, rose by 0.57%.

However, it’s a bullish day for the French auto sector. Stellantis NV rose 1.11%, with Renault up 2.28% at the end of the day.

Air France-KLM increased by 4.03%, with Airbus SE increase by 0.93%

On the VIX index

It was the second day in a row in the green for the VIX on Monday.

After rising 3.05% on Friday, the VIX rose 6.69% to end the day at 19.46.

The NASDAQ was up 0.06% while the Dow and S&P500 ended the day down 0.28% and 0.18%, respectively.

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