DE30: Strong macro data from China boosts optimism in Europe💡

• Fashion, industrial and automotive companies post the biggest gains

Overall market situation:

Friday's session on European markets brings clear increases in the quotations of most companies. Stock market sentiment was created today by macro data from China, which raised hopes that one of the most important economies is slowly emerging from the downward spiral of the economy, which propelled the quotations of shares of companies closely linked to this market. 

On the macro calendar today, we primarily find the reading of US industrial production data.

At the moment, the majority of companies listed in Europe are up during Friday's trading session. Particularly well done are companies linked to the fashion sector, which gained sharply in value after the publication of good macro data from China, which is a very important market for these companies.Source: xStation 5

Futures based on the German DE30 are gaining close to 1.75% today (but ignoring the futures rollover, the rally is only 0.95%). Source: xStation 5

News:

The sector that stands out today across all parts of the European economy is fashion companies, which reacted with clear rises to the reading of good macroeconomic data from China, which is one of the most important markets for companies such as LVMH (MC.FR), Kering (KER.FR) and Swatch (UHR.CH).

Unemployment in China was 5.2% by 0.1% below forecasts and 5.3% previously. Retail sales rose by 4.6% y-o-y against forecasts of 3% and 2.5% reported last time. Industrial production also rose by 4.5%, where a minimal improvement to 3.9% was expected against 3.7% the previous reading.

Source: xStation 5

Similar movements are seen in shares of companies such as Rio Tinto (RIO.UK), Glencore (GLEN.UK) and ArcelorMittal (MT.NL). The metals and mining market is gaining in the face of increased demand for iron in China and hopes of a rebound in overall economic momentum in China. 

Source: xStation 5

Although the situation in the automotive market is somewhat different (due to tensions in this sector between the Old Continent and China), here too we are seeing a dynamic rebound in the quotations of companies such as BMW (BMW.DE). However, let us remember that in the case of the Bavarian company, we are dealing here with the effect of a high dependence on the Chinese market in terms of the company's share of revenues. 

Source: xStation 

Major percentage changes in individual companies of the DAX index. Source: Bloomberg Finance L.P.

Information from individual companies in the DAX index. Source: Bloomberg Finance L.P.