The DAX30 lost 0.28%, while the CAC40 and EuroStoxx600 gained 0.18% and 0.01%, respectively.
The economic data were on the brighter side, with the German economy in focus again. Disappointing economic data from Germany weighed on the DAX30.
With the Jackson Hole Symposium kicking off today, a lot of caution was required, which was holding the majors back.
While the markets are betting that the Fed will continue to push policy, it wasn’t certain on the tapered front.
The rise in delta variant cases around the world has also raised concerns about the economic outlook as some economies lag behind in vaccination rates.
It was a quieter economic calendar during the European session.
The focus at the beginning of the meeting was on the figures from the German IFO business climate index.
In August, the Business IFO business climate index fell from 100.7 to 99.4. Economists had forecast a drop to 100.4.
The decline came despite a recovery in business sentiment regarding the current situation. In August, the Current Assessment sub-index rose from 100.4 to 101.4.
Business expectations weighed on the headline, falling from 101.0 to 97.5.
According to the August poll
- In the manufacturing sector, the business climate has deteriorated noticeably. The assessment of the current situation was less positive. While the companies were still satisfied with the day-to-day business, the outlook for the coming months was reversed. The expectation indicator has fallen to its lowest level since November 2020.
- For the service sector, optimism about future business development has clouded over. On the other hand, companies assess the current situation better than in the previous month.
- The dealers were less satisfied with their current business situation. Pessimism also returned with regard to expectations. The retail sector was particularly concerned about the coming months.
From the USA
Orders for long-lived and long-lived core goods were also influenced.
Durable goods orders were down 0.1% in July, partially offsetting a 0.9% increase versus June. Economists had forecast a decline of 0.3%. However, core durable goods rose 0.7% versus a projected 0.5% increase. In June, core durable goods were up 0.6%.
The market movers
For the DAX: It was a mixed day for the auto industry on Wednesday. BMW and Continental decreased by 0.57% and 0.17%, respectively. Volkswagen and Daimler ended the day up 0.40% and 0.09% respectively.
However, it was a bullish day for banks. Deutsche Bank and Commerzbank increased by 1.36% and 2.45%, respectively.
From the CAC, it was a bullish day for banks. BNP Paribas and Soc Gen rose by 2.04% and 2.44%, respectively Credit Agricole increase by 1.38%.
It was also a relatively bullish day for the French auto sector. Stellantis NV and Renault recorded modest gains of 0.55% and 0.22%, respectively.
Air France-KLM slipped 0.36% while Airbus SE increased by 2.17%.
On the VIX index
It was back in the red for Wednesday’s VIX, marking a 3rd day in the red of 4 sessions.
After reversing a 0.40% gain on Tuesday, the VIX fell 2.50% to end the day at 16.79.
The S & P500 rose 0.22%, with the Dow and NASDAQ closing the day 0.11% and 0.15%, respectively.