It was a relatively bullish day for the European majors on Wednesday.
The DAX30 gained only 0.03%, the CAC40 and the EuroStoxx600 ended the day by 0.34% and 0.29% respectively. It was a new record close for the EuroStoxx600, with commodity stocks providing support.
The service sector PMI numbers from China and economic data from the eurozone offered little consolation as markets focused on the Fed.
However, US economic data and corporate earnings were market positive.
Unemployment in the euro zone was the focus at the beginning of the European meeting.
In September, the euro area unemployment rate fell from 7.5% to 7.4%, which was in line with projections.
According to Eurostat,
- For adults, the number of unemployed in the euro area was estimated at 12,079 million.
- Compared to August 2021, the number of unemployed fell by 306,000.
- Compared to the previous year, the number of unemployed fell by 1.919 million.
From the USA
From the US, the focus was on the non-farm ADP employment change figures before the service sector data.
According to ADP, non-farm employment rose 571,000 in October, up from 523,000 in September. Economists had forecast an increase of 400,000.
In October, the ISM PMI for the non-manufacturing sector rose from 61.9 to a new ATH of 66.7 versus a forecast of 62.0.
According to the October report
- The employment index slipped from 53.0 to 51.6.
- Incoming orders also increased, with the index rising 6.2 percentage points to ATH 69.7%.
- The Business Activity Index also reached an all-time high, increasing by 7.5 percentage points to 69.8%.
- The cost pressure increased again. The price index reached its second highest value ever, rising 5.4 percentage points to 82.9%.
After the European Open, the FED made its first monetary policy decision of the final quarter.
The market movers
For the DAX: It was another mixed day for the auto industry on Wednesday. Volkswagen down 4.67%, with Daimler decreases by 0.13%. Continental however, recovered by 2.40% with BMW 1.68% increase supported by positive results.
It was a bullish day for banks. Deutsche Bank rose 1.18%, with Commerzbank increased by 0.44%.
From the CAC, it was a bullish day for banks. BNP Paribas increased by 0.76%, with Credit Agricole and Soc Gen by 0.44% and 0.20% respectively.
It was also a bullish day for the French auto sector. Stellantis NV increased by 1.02%, with Renault increased by 0.38%.
Air France-KLM 0.61% increased while Airbus SE ended the day down 2.09%.
On the VIX index
It was the second straight day in the red for the VIX on Wednesday.
After falling 2.32% on Tuesday, the VIX lost 5.80% to end the day at 3:10 p.m.
The NASDAQ gained 1.04% while the S&P500 and Dow gained 0.65% and 0.29%, respectively.