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The reopening in China and US payrolls outside of agriculture in focus

The DAX30 gained 1.85%, the EuroStoxx600 and the CAC40 ended the day by 1.60% and 1.65% respectively.

Economic data from Germany did not weigh on the majors despite particularly disappointing industrial production figures.

Hopes of an early end to the US debt ceiling supported riskier assets that day.

When it opened in Europe, European markets were guided by Asia and US futures before China’s market reopened this morning.

The statistics

The most important statistics included figures on industrial production from Germany.

The German economy

Industrial production fell 4.0% in August, compared with a forecast decline of 0.6%. Production was up 1.3% in July.

According to Destatis

  • Production in industry excluding energy and construction fell by 4.7%.
    • Manufacturers also reported that they were limited by the shortage of intermediate products.
    • Within the industry, the production of capital goods collapsed by 7.8%.
    • The production of motor vehicles, trailers and semi-trailers fell by 17.5%, while the production of machinery and equipment fell by 6.3%.
    • The production of consumer goods and intermediate goods decreased by 2.6% and 2.4% respectively.
  • Outside industry, energy production rose 4.1%, while production in construction fell 3.1%.
  • Industrial production rose 1.7% year-over-year after rising 6.0% in July.

From the USA

Weekly jobless claims were the focus later in the day.

In the week ending October 1, initial jobless claims fell from 364,000 to 326,000. Economists had forecast a decline to 348,000.

The market movers

For the DAX: It was a bullish day for the auto sector on Thursday. Continental and Daimler jumped 4.25% and 4.31% respectively to take the lead. BMW and Volkswagen also found strong support, rising 2.49% and 2.55%, respectively.

It was a bullish day for banks too. Deutsche Bank increased by 4.45%, with Commerzbank ended the day up 3.72%.

From the CAC, it was a bullish day for banks. BNP Paribas and Soc Gen increased by 1.58% and 2.01% respectively, with Credit Agricole Rally by 3.23%.

However, it was a mixed day for the French automotive industry. Stellantis NV slipped 4.17% while Renault ended the day up 2.38%.

Air France-KLM decreased by 1.73% while Airbus SE increased by 0.69%.

On the VIX index

It was the third straight day in the red for the VIX on Thursday.

After falling 1.41% on Wednesday, the VIX lost 6.95% to end the day at 19.54.

The NASDAQ was up 1.05%, with the Dow and S & P500 closing the day 0.98% and 0.83%, respectively.

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