5 – 9 July | Figeac Aéro and the ZEW index

News

The summer period will be busy for the markets with earnings season getting close and a rebound in economic activity expected. However, some investors remain cautious as the Covid-19 Delta variant spreads. For this week’s BUX Breakdown, we’ll focus on some important eurozone data, and highlight a few stocks to keep your eye on.

Investor sentiment in Europe

If you’re a regular reader of economic news, you may have heard of the ZEW index. It’s a German indicator that takes the pulse of the European economy. The ZEW index is different to others because it measures the opinions of humans (350 German financial analysts, to be precise) and not cold statistical numbers.

The latest data from the ZEW index will be announced on Tuesday, July 6th. Last month, the ZEW shocked everyone by posting an unexpected drop after several months of growth. Was this an isolated event, or the start of a new trend?

This data can have an impact on your portfolio, since it influences the movements of the markets as a whole. For example, you can check the impact on ETFs that track activity in the eurozone such as the Europe Stoxx 50 Index ETF (iShares) or the EU Top 50 Index ETF (iShares).

Will Figeac Aéro’s stock take off again?

Figeac Aéro is a French aeronautics giant from the Occitanie region. The company will publish its quarterly results on Wednesday, July 7th.

Figeac Aéro is in the middle of a big financial restructure in the hope of turning things around for the company. The recent crisis, of course, has weakened the entire sector. With this in mind, Figeac Aéro also acquired a new subsidiary in Saudi Arabia a few weeks ago.

What can we expect? In the previous results, the company lost 55.4% of its year-over-year revenue. For this new financial year, Figeac Aéro’s figures will probably come in lower than usual again. Although, we are expecting a bit of good news; an increase in activity of around 13% compared to the first half of the financial year.

Levi Strauss reports earnings

The iconic California jeans company is in the spotlight this Thursday, July 8th. Levi’s will report its second-quarter earnings after the bell. After a tough year for the clothing industry, Levi Strauss has recently seen demand coming back strong, especially in North America. Levi’s stock is now up 79% year-over-year.

Sales for the second quarter should explode, with growth of 144% compared to Q2 2020.

Check out the new statistics on BUX Zero

We recently added new data to every stock in the BUX Zero app. It’s designed to give you a better overview of the assets you want to invest in and make choices that are right for you.

You can now see EPS (earnings-per-share), revenue, market capitalisation and even the P/E ratio (price-to-earnings ratio). We’ve also included information about dividends, such as the dividend yield and ex-dividend date. Make sure you have the latest version of the app to see the new statistics!

Sales for the second quarter should explode, with growth of 144% compared to Q2 2020.

Economic and results calendar

Monday – Industrial production in France. Final PMI index for services in the eurozone, Germany, France and Spain. Annual inflation rate in China. Note: US markets are closed for Independence Day.

Tuesday – Investor sentiment index (ZEW) in the eurozone and in Germany. US Final PMI Services Index.

Wednesday – Inflation rate in the Netherlands. Trade balance in France. Industrial production in Germany. Quarterly figures from Figeac Aéro.

Thursday – Trade balance in Germany. Unemployment rate in the United States. Quarterly figures from Levi Strauss.

Friday – Trade balance and industrial production in Great Britain.

Have a great week on the markets!

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The BUX Breakdown was written by Clémentine Pougnet.

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All views, opinions, and analyses in this article should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.