European Equities: Brexit and U.S Politics in Focus, with no Stats to Influence

Economic calendar:
Monday October 12th
ECB President Lagarde speaks
Tuesday October 13th
German CPI (MoM) (Sep) final
German ZEW current status (Oct)
German ZEW Economic Sentiment (Oct)
Economic Sentiment of the Eurozone ZEW (Oct)
Wednesday October 14th
Spanish CPI (YoY) (Sep) final
Spanish HICP (YoY) (Sep) final
ECB President Lagarde speaks
Eurozone Industrial Production (MoM) (Aug)
Thursday October 15th
French CPI (MoM) (Sep) final
French HICP (MoM) (Sep) final
ECB President Lagarde speaks
Friday October 16
Italian CPI (MoM) (Sep) final
Inflation in the Eurozone (Sep) final
Eurozone trade balance (Aug)
The majors
It was a bullish end of the week for the European majors on Friday. The CAC40 rose 0.71%, leading the way. The DAX300 and the EuroStoxx600 gained 0.07% and 0.55%, respectively.
There weren't any major stats to give directions to the majors that day, so US politics and Brexit gave the directions.
Positive information from US President Trump and House Spokesman Pelosi about progress made towards a US stimulus package provided support.
For the broader market, Biden's growing lead in the polls has also allayed concerns about political uncertainty over the next month. Markets begin with a blue wave and a clean course that would eliminate any Trump argument over the outcome. A clean swing would also provide more momentum to support the economic recovery.
The statistics
It was a particularly quiet day on the eurozone economic calendar. There were no key statistics from the euro zone or the US to give any direction.
While Capitol Hill updates have been market positive, a new pike held the majors back in new COVID-19 cases.
Reintroducing containment measures in France and other Member States could reverse the economic recovery ...
The market moves
For the DAX: It was a bearish day for the automotive sector on Friday. Continental lost 1.72% and led downwards. BMW and Daimler posted losses of 1.63% and 1.56%, respectively. Volkswagen ended the day at a more modest 0.12%.
It was a bearish day for banks too. Deutsche Bank and Commerzbank fell 1.22% and 0.80%, respectively.
From the CAC, it was a bearish day for bank stocks. Credit Agricole and Soc Gen were down 1.39% and 1.41% respectively, while BNP Paribas fell a modest 0.89%.
It was also a bearish day for the French automotive sector. Peugeot and Renault ended the day with losses of 1.83% and 3.35% respectively.
Air France-KLM reversed the 1.76% increase on Thursday with a 2.8% decrease, with Airbus SE falling 0.21%.
On the VIX index
For the VIX it was a third day in a row in the red on Friday. After declining 6.06% from Thursday, the VIX fell 5.16%, ending the day at 25:00.
With no substantial US statistics, updates to Capitol Hill and market sentiment towards the US presidential election weighed on the VIX.
The Dow and S & P500 rose 0.57% and 0.88%, respectively, while the NASDAQ rose 1.39%.
The day ahead
It's a particularly quiet start to the week in the eurozone's economic calendar.
No substantial statistics from the Eurozone or the US are due to direct the majors.
We can assume that the majors will orientate themselves on every weekend talk from Washington and on updates on Brexit.
The EU and UK are entering final talks this week that could deliver a much-needed EU-UK trade deal. However, Boris Johnson has threatened to leave if no deal is in sight by October 15.
Later in the day, expect updates from Capitol Hill and the U.S. presidential election to have an impact as well.
However, for the European majors and the economic outlook, a sustained surge in new COVID-19 cases could also test support.
The future
On the futures markets, the Dow had fallen 52 points at the time of writing, while the DAX had risen by 10.5 points.
In our economic calendar you will find all economic events of today.
This article was originally published on FX Empire
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A calm economic calendar keeps Brexit, COVID-19 and US politics in focus

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