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

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

It was a mixed day for the European majors on Tuesday. The CAC40 fell by 0.23%, while the DAX30 and EuroStoxx600 rose by 0.06% and by 0.20% respectively.To get more news about WikiFX, you can visit wikifx official website.   Concerns over a continued rise in new COVID-19 cases across Europe and the U.S weighed on risk sentiment through the session.   The latest rise in new cases has led to some U.S states reintroducing containment measures, with the German government also announcing plans to curb the spread of the virus.   Better than expected economic data from Germany and the Eurozone coupled with hopes of a Brexit deal provided the much-needed support.   News of Boris Johnson planning to meet with EU President Ursula von der Leyen to break the impasse raised hope. Johnsons willingness to remove contentious clauses from the Internal Market Bill was also well received.   The Stats   It was a relatively busy day on the Eurozone economic calendar. German and Eurozone ZEW Economic Sentiment figures, French non-farm payrolls, and finalized Eurozone GDP numbers were in focus.   In December, Germany‘s ZEW Economic Sentiment Index jumped from 39.0 to 55.0, with the Eurozone’s rising from 32.8 to 54.4. The jump came off the back of COVID-19 vaccine news.   For Germany, there was a fall in sentiment towards current conditions, however. Germanys current conditions index fell from -64.3 to -66.5.   From the Eurozone, the Eurozone economy expanded by 12.5% in the 3rd quarter, reversing an 11.8% contraction from the 2nd quarter. Year-on-year, the economy contracted by 4.3%. In the 2nd quarter, the economy had contracted by 14.8%. Both were revised upwards from previous estimates, though only marginally.   In the 3rd quarter, French nonfarm payrolls increased by 1.6%, following a 1.8% rise in the 2nd quarter.   The GDP numbers, along with French nonfarm payroll figures, had a muted impact on the majors, however.It was a relatively quiet day on the economic data front, with 3rd quarter unit labor costs and nonfarm productivity numbers in focus.   According to finalized figures, nonfarm productivity rose by 4.6%, with unit labor costs falling by 6.6% quarter-on-quarter.   In the 2nd quarter, nonfarm productivity had jumped by 10.6%, while unit labor costs had risen by 8.5%.