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Futures indicate another shaky start for the markets

The majors

It was a mixed week start for the majors on Monday.

The CAC40 rose by 0.15%, while the DAX30 and the EuroStoxx600 ended the day with 0.32% and 0.08% respectively in the red.

Economic data from Germany disappointed on Monday and linked the DAX30 back at the beginning of the week,

Despite the impending delta variant of the economic recovery, the losses on the DAX30 and EuroStoxx600 were modest.

Market optimism about an economic upturn, aided by last week’s private sector PMIs and a dovish ECB, remained the main drivers.

The statistics

The focus of the European meeting was on economic data from Germany.

In July, the ifo business climate index fell from 103.7 to 101.2 compared to a forecast decline to 103.6.

According to the July poll

  • Sentiment towards the current conditions improved, with the sub-index for the current conditions increasing from 99.7 to 100.4.
  • However, concerns about the outlook predominated as the business climate sub-index fell from 101.7 to 100.8.

At sector level,

  • The manufacturing index fell on a sharp decline in optimism in corporate expectations. It was the fourth consecutive monthly decline.
  • In contrast, the manufacturer’s rating of the current conditions reached its highest level since August 2018.
  • A similar trend was evident across the service sector, with the business climate sub-index falling while companies were more satisfied with their day-to-day business.

From the USA

The focus was on the new home sales figures for June, which had a subdued effect on the European majors.

The market movers

For the DAX: It was a mixed day for the auto industry on Monday. Daimler rose 0.03% against the trend. Continental however, it slipped by 1.50% BMW and Volkswagen decreases by 0.40% and 0.89% respectively.

It was a bullish day for banks. Deutsche Bank and Commerzbank ended the day up 0.66% and 1.41% respectively.

From the CAC, it was a bullish day for banks. BNP Paribas increased by 2.25%, with Credit Agricole and Soc Gen is increasing by 1.73% and by 1.78%, respectively.

It was also a bullish day for the French auto sector. Stellantis NV and Renault ended the day up 0.85% and 1.04% respectively.

Air France-KLM increased by 2.32%, with Airbus SE increasing by 0.45%.

On the VIX index

A run of 4 consecutive red days ended for the VIX on Monday.

The VIX partially reversed a 2.77% decline from Friday, rising 2.21% to end the day at 17.58.

The NASDAQ was up 0.03%, the Dow and S & P500 both ended the day 0.24%.

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