It was another bullish day for European majors on Wednesday. The CAC40 appreciated by 1.24%, with the DAX30 and EuroStoxx600 increasing by 0.95% and 0.92% respectively.
As of midweek, investors continued to dismiss Omicron updates as tech stocks were on the move. On the economic data front, upward revisions to US GDP figures and a pickup in US consumer confidence were positive points for the market late in the session.
Omicron news continued to be negative for the market, however. News of governments around the world imposing measures to curb the spread of the virus limited the rise that day.
There are no major Eurozone statistics to give direction to the majors.
The United States
The final GDP figures were the center of attention. In the 3e quarter, the US economy grew by 2.3%, compared to 2sd estimate 2.1%. The economy grew 6.7% in the 2sd trimester.
The CB Consumer Confidence Index unexpectedly increased from 111.9 to 115.8. Economists were forecasting a drop to 110.8 in December.
For the DAX: It was a bullish day for the auto industry on Wednesday. Daimler and Continental led the way, with gains of 1.56% and 1.36% respectively. Volkswagen and Bmw ended the day up 0.75% and 0.40% respectively.
It was also a bullish day for the banks. German bank and Commerzbank increased by 0.26% and 0.60% respectively.
From CAC, it was also a bullish day for the banks. Gen Soc in the lead with an increase of 1.10%, with BNP Paribas and Agricultural credit ending the day up 0.83% and 0.64% respectively.
The French automotive sector has also found support. Stellantis SA and Renault increased by 0.88% and 0.21% respectively.
Air France-KLM ends the day up 0.63%, with Airbus SE up 4.01%.
On the VIX index
It was a 2sd consecutive day in the red for the VIX Wednesday.
After losing 8.13% on Tuesday, the VIX slipped 11.33% to end the day at 18.63.
The Dow Jones rose 0.74%, with the NASDAQ and the S & P500 gaining 1.18% and 1.02% respectively.
The day to come
It’s a relatively calm day ahead on the eurozone economic calendar. Finalized 3e the quarter’s GDP figures for Spain will be the focus of attention at the start of the session. However, we don’t expect the numbers to have any influence.
From the United States, basic durable goods orders, personal spending, inflation and jobless claims will provide direction later today.
Outside of the economic calendar, COVID-19 news updates also continue to generate interest and test risk appetite.
In the futures markets, at the time of writing, the Dow Mini was up 5 points, the DAX up 48 points.
For an overview of all of today’s economic events, check out our economic calendar.