US economic data and Omicron at a glance



German consumer confidence figures and the euro zone did not weigh on the European majors. Rising consumer prices and the reintroduction of COVID-19 restrictions have resulted in lower consumer confidence.

From the United States, there were no major statistics that day to provide guidance at the end of the semester, leaving the US majors to provide guidance.

While the continued spread of the Omicron strain has remained negative for the market, news from Moderna has been positive for the market. Moderna’s booster has been reported to greatly increase protection against Omicron. The vaccine manufacturer also noted that a double booster dose offers significantly higher protection.

Statistics

As the European session approached, German consumer sentiment was at the center of concerns. At the end of the session, consumer confidence in the euro zone also sparked interest.

Sentiment of German consumers

For January, the GfK Consumer Climate Index slipped from a revised level of -1.8 to -6.8. Economists were forecasting a more modest drop to -2.7.

According to the December survey,

  • Economic and income expectations have dropped dramatically, as has the propensity to buy.
  • As the propensity to save has increased, the GfK forecast a sharp drop in sentiment for January.
  • High cases of COVID-19 due to the 4e wave of the pandemic leading to further restrictions and a significant increase in prices weighed on sentiment.

The subcomponents

  • The economic outlook indicator lost 13.9 points to 17.1.
  • Income expectations fell 6 points to 6.9 points. Over the last 3 months, the income expectations indicator has lost more than 30 points…
  • The propensity to buy fell from 8.9 points to 0.8 points. This was the lowest value since January-2021, when it stood at zero.

Consumer confidence in the euro area

According to the European Commission, the flash indicator of consumer confidence in the euro area fell from -6.8 points to -8.3 points. Economists were forecasting a drop to -8.0.

The United States

It was another calm day on the economic calendar, with no US statistics to give direction to the majors.

Market movers

For the DAX: It was a bullish day for the auto industry on Tuesday. Daimler and Continental in the lead, gaining 2.28% and 2.23% respectively, with Bmw up 2.15%. Volkswagen ended the day with a more modest 1.42%.

It was also a bullish day for the banks. German bank and Commerzbank increased by 2.57% and 3.78% respectively.

From CAC, it was a bullish day for the banks. Gen Soc and Agricultural credit increased by 2.66% and 2.34% respectively, with BNP Paribas up 4.32%.

The French automotive sector has also found strong support. Stellantis SA and Renault ended the day up 3.15% and 3.35% respectively.

Air France-KLM and Airbus SE were among the first, accounting for 4.48% and 4.64% respectively.

On the VIX index

He was back in the red for the VIX on Tuesday, ending a 3-day winning streak.

Reversing a 6.03% gain from Monday, the VIX fell 8.13% to end the day at 21.01.

The NASDAQ rebounded 2.40%, with the Dow Jones and the S & P500 rising 1.60% and 1.78% respectively.


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