European Equities: Brexit, COVID-19 Vaccine news, and U.S Stimulus in Focus

by Warrior2

It’s a quiet day on the economic calendar, which will leave Brexit and U.S stimulus in focus on the day.

Monday, 28th December

France Jobseekers Total

Wednesday, 30th December

Spanish HICP (YoY) (Dec)  AdvertisementAdvertisement

The Majors

It a quiet end to the week on Thursday, with the CAC40 falling by 0.10%, while the EuroStoxx600 rose by 0.12%.

News of a Brexit trade deal within reach provided the majors with support ahead of the holidays. Concerns over the continued rise in new COVID-19 cases and the new strain continued to weigh on risk appetite, however.

Also adding pressure on the majors was some uncertainty over the COVID-19 stimulus package in the U.S.

Stock markets in Germany and Italy were closed for the holidays.

The Stats

It was a particularly quiet day on the economic calendar. There were no material stats to provide the majors with direction.

From the U.S

It was also a particularly quiet day with no material stats to influence at the end of a shortened European session.

The Market Movers

For the DAX: The market was closed in Germany on Thursday.

From the CAC, it was a mixed day for the banks. BNP Paribas fell by 0.09%, while Credit Agricole and Soc Gen rose by 0.57% and by 0.08% respectively.

It was also a mixed day for the French auto sector. Peugeot rose by 1.20%, while Renault slipped by 0.22%

Air France-KLM fell by 1.36%, while Airbus SE eked out a 0.10% gain.

On the VIX Index

There was a 3rd consecutive day in the red for the VIX on Thursday, logging a 7th day in the red from 8. Following on from a 3.80% fall on Wednesday, the VIX fell by 7.64% to end the day at 21.53.

The Dow and S&P500 rose by 0.23% and by 0.35% respectively, with the NASDAQ gaining 0.26%. News of a Brexit trade deal supported riskier assets on the day.

Uncertainty over the path of the COVID-19 stimulus package pegged the majors back in a shortened session, however.

News hit the wires on Thursday of lawmakers on Capitol Hill blocking Trump’s demand for changes.

Ultimately, however, hopes of an economic recovery, supported by expectations of nationwide vaccinations in the year to come and monetary and fiscal stimulus continued to provide support.

The Day Ahead

It’s another quiet day ahead on the economic calendar. French jobseeker figures are due out that will likely have a muted impact on the majors.

There are no major stats from the U.S to provide direction later in the day.

The lack of stats will leave the major in the hands of Brexit and stimulus news from Capitol Hill. COVID-19 vaccine news will also garner attention on the day.

The Futures

In the futures markets, at the time of writing, the DAX was up by 68 points, with the Dow Mini was up by 63 points.

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