European Equities: Futures Point to some other Shaky Start for the Markets

The CAC40 rose by 0.15%, as the dax30 and the EuroStoxx600 ended the afternoon down by 0.32% and by 0.08% respectively. Economic data from Germany disappointed on Monday, pegging the DAX30 back from the beginning of the week, Regardless of the threat of the Delta variant on the economic recovery, the losses for the DAX30 and EuroStoxx600 were modest. Market optimism towards a pickup in economic activity, supported by last week's private sector PMIs and a dovish ECB remained key drivers.

The Stats

Business sentiment figures from Germany were in focus early in the European session. In July, the Ifo Business Climate Index fell from 103.7 to 101.2, versus a forecasted decline to 103.6.

In line with the July survey,

Sentiment towards current conditions improved, with the present conditions sub-index rising from 99.7 to 100.4. Concerns on the outlook weighed, however, with the business enterprise climate sub-index falling from 101.7 to 100.8.

At sector level,

The index in manufacturing fell due to a marked decline in optimism in companies'expectations. It absolutely was a 4th consecutive monthly decline. By contrast manufacturer assessment of current conditions hit the best level since Aug-2018. There clearly was a similar trend across the services sector, with the business enterprise climate sub-index weakening, while firms were more satisfied with their ongoing business.

From the U.S

New home sales figures for June were in focus that had a muted impact on the European majors.

The Market Movers

For the DAX: It absolutely was a combined day for the auto sector on Monday. Daimler rose by 0.03% to buck the trend. Continental slid by 1.50%, however, with BMW and Volkswagen falling by 0.40% and by 0.89% respectively. It absolutely was a bullish day for the banks. Deutsche Bank and Commerzbank ended the afternoon up by 0.66% and by 1.41% respectively. From the CAC, it absolutely was a bullish day for the banks. BNP Paribas rallied by 2.25%, with Credit Agricole and Soc Gen rising by 1.73% and by 1.78% respectively. It absolutely was also a bullish day for the French auto sector. Stellantis NV and Renault ended the afternoon up by 0.85% and by 1.04% respectively. Air France-KLM rallied by 2.32%, with Airbus SE rising by 0.45%.

On the VIX Index

A work of 4 consecutive days in the red came to a finish for the VIX on Monday. Partially reversing a 2.77% fall from Friday, the VIX rose by 2.21% to finish the afternoon at 17.58. The NASDAQ eked out a 0.03% gain, with the Dow and the S&P500 both ending the afternoon up by 0.24% respectively.

The Day Ahead

It's a particularly quiet day ahead on the economic calendar. You can find no major stats from the Eurozone to offer the majors with direction. From the U.S, consumer confidence figures late in the afternoon will give you the majors with direction, however. Far from the economic calendar, corporate earnings and COVID-19 news updates will remain aspects of focus.

The Futures

In the futures markets, at the time of writing, the Dow Mini was down by 130 points, with the DAX down by 71 points. For a glance at each of today's economic events, check out our economic calendar.