It was another relatively bullish day for the European majors on Thursday.
The CAC40 and the EuroStoxx600 gained 0.36% and 0.11% respectively, while the DAX30 ended the day with a plus of 0.70%.
For the EuroStoxx600, it was a straight day gain on Thursday for the 9th straight, with market optimism dampening concerns over the upward trend in new COVID-19 cases.
The US economic data was again market friendly, with unemployment claims not showing any significant decline.
The figures from the euro zone had a relatively subdued effect on the majors, despite a further decline in industrial production in the euro zone.
Economic data were back on the lighter side on Thursday, with industrial production numbers in focus.
Across the eurozone as a whole, industrial production fell by 0.3% in June compared with the previous month, after a decline of 1.1% in May. Economists had forecast a production stop at the end of the quarter.
According to Eurostat,
- The production of capital goods fell by 1.5% and energy by 0.6%.
- There was growth in the production of durable consumer goods (+ 0.1%) and intermediate goods (+ 0.1%).
- At the top, however, was the production of consumer goods with an increase of 1.6%.
- Among the Member States, Ireland recorded the largest decrease (-4.4%), followed by Portugal (-2.6%).
- However, Malta (+ 5.2%), the Netherlands (+ 3.3%) and Estonia (+ 3.2%) recorded the strongest increases.
- Compared to June 2020, production increased by 9.7%, after an increase of 20.6% in May.
From the USA
It was another relatively quiet but important day on the economic calendar.
Wholesale inflation and weekly unemployment claims figures were the focus of the European meeting later.
In July, the producer price index rose 1.0% after rising 1.0% in June. Economists had forecast an increase of 0.7%.
More significant, however, was a modest decline in initial jobless claims from 387,000 to 375,000 in the week ended August 6. Economists had forecast a drop to 365k.
The market movers
For the DAX: It was a bullish day for the auto sector on Thursday. BMW and Volkswagen rose by 1.34% and 1.52%, respectively, with Daimler up 1.16%. Continental saw a more modest increase of 0.41%.
However, it was a bearish day for banks. Deutsche Bank and Commerzbank ended the day with losses of 0.59% and 0.22% respectively.
From the CAC, it was a bearish day for the banks. BNP Paribas fell 0.82%, with Credit Agricole and Soc Gen ended the day with a minus of 0.67% and 0.60% respectively.
It’s a mixed day for the French auto industry. Stellantis NV rose 2.66% while Renault slipped 0.04%.
Air France-KLM and Airbus SE ended the day with losses of 0.71% and 0.36% respectively.
On the VIX index
It was the second straight day in the red for the VIX on Thursday.
After falling 4.35% on Wednesday, the VIX fell 2.93%, ending the day at 3:59 pm.
The Dow rose 0.04%, the NASDAQ and S & P500 ended the day 0.35% and 0.30%, respectively.