European actions German factory orders and COVID-19 news at a glance



It was a bearish weekend for the European majors on Friday.

The DAX30 and EuroStoxx600 fell 0.61% and 0.57% respectively, with the CAC40 ending the day down 0.44%.

Despite relatively bullish economic data in the eurozone, the majors have struggled in the face of market concerns over the Omicron strain. The uncertainty about the vaccine’s effectiveness and whether symptoms will be more severe than other strains have weighed on feelings of risk.

Later in the session, disappointing US NFP numbers added to market angst that day.


It has been a busy economic calendar for the euro area. The focus of attention was on Member State and private sector PMIs in the euro area and retail sales in the euro area.

Member States

For Spain, the services PMI fell from 56.6 to 59.8 against a forecast of 58.8.

Activity in the service sector in Italy also improved, with the PMI dropping from 52.4 to 55.9. Economists were forecasting an increase to 54.8.

For France, the services PMI fell from 56.6 to 57.4, against 58.2.

The German services PMI index fell from 52.4 to 52.7, down from the preliminary 53.4.

The euro zone

For the euro zone, the services PMI index fell from 54.6 to 55.9, down from the preliminary 56.6.

As a result, the composite PMI index fell from 54.2 to 55.4, down from the preliminary 55.8.

According to the November survey,

  • Despite the recovery in private sector activity, growth in the services sector masked the second smallest increase in manufacturing output since its recovery began in July 2020.
  • New business continued to increase in November, although the rate of increase was the smallest since April. Significantly, a downward trend has continued since July.
  • Job growth has accelerated in the private sector as companies seek to build capacity and close growing backlogs.
  • Pressure on prices remained widespread, however. Input costs and inflation of production costs have reached new survey heights.
  • Business confidence weakened to its lowest level in 10 months, with the drop attributed to service providers.

By country

  • Ireland recorded the highest rate of expansion, with a lowest 7-month composite PMI of 59.3.
  • Germany ranked at the bottom of the table, with a high 2-month composite PMI of 52.2.

Retail sales

For the euro zone, retail sales rose 0.2% in October, after falling 0.4 %% in September. Economists were forecasting an increase of 0.2%.

According to Eurostat,

  • Sales of automotive fuels increased by 1.3% and by 0.4% for non-food products.
  • Sales of food, beverages and tobacco fell 0.1%.
  • Slovenia (+ 13.0%) and Portugal (+ 2.3%) recorded the strongest increases in sales.
  • Latvia (-5.4%), Austria (-2.8%) and Estonia (-2.6%) recorded the largest decreases compared to September-2021.
  • Retail sales increased 1.4% compared to October 2020.
  • Sales of automotive fuels increased by 8.5% and non-food products by 2.5%. However, sales of food, beverages and tobacco fell 1.2%.

The United States

The non-farm payroll and PMI figures for the service sector have yielded mixed results for the markets.

In November, the non-farm payroll increased by only 210,000 after increasing by 546,000 in October. While the participation rate fell from 61.6% to 61.8%, the unemployment rate fell from 4.6% to 4.2%.

For the services sector, the ISM non-manufacturing PMI fell from 66.7 to 69.1, which is positive for the market.

Market movers

For the DAX: It was a bearish day for the auto sector on Friday. Continental again in the lead with a decline of 3.98%, with Bmw ending the day down 1.28%. Daimler and Volkswagen fell by 1.11% and 1.06% respectively

It was also a bearish day for the banks. German bank fell by 1.92%, with Commerzbank down 0.30%.

From CAC, it was a relatively bearish day for the banks. Gen Soc and BNP Paribas experienced losses of 0.53% and 0.50% respectively, with Agricultural credit down 0.41%.

The French auto sector also experienced a bearish session. Stellantis SA and Renault ended the day down 1.16% and 1.10% respectively.

Air France-KLM fell 0.61%, with Airbus SE sliding 2.52%.

On the VIX index

It was back in the green for the VIX on Friday.

Partially reversing a 10.19% decline from Thursday, the VIX rose 9.73% to end the day at 30.67.

The NASDAQ slipped 1.92%, with the Dow Jones and the S & P500 posting losses of 0.17% and 0.84% ​​respectively.

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