EUR 100.00 For Business Accounts Only

IBERIAN DAILY 18 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACCIONA, ACCIONA ENERGÍA, INDRA.

The Fed follows the script
It was a session of little movement and mixed performance on European stock markets, pending the Fed meeting. In the STOXX 600, Technology and Retail were the sectors rising the most, whereas Energy and Basic Materials posted the biggest losses. On the macro side, in the euro zone, August’s final inflation fell -0.1% vs. the preliminary figure to 2.0% YoY, with the core figure unchanged at 2.3%. In the UK, August’s inflation repeated at 3.8% YoY, as expected, and the core figure fell to 3.6% (also as expected). In the US, the Fed lowered rates by -25bps as expected, and member expectations are for 2 cuts this year and 1 next year, which would leave the effective rate at 3.375% (vs. 5 cuts priced in by the market) in view of the higher risk of a deteriorating job market. On the activity side, both building permits and housing starts fell more than expected. In Brazil, the Central Bank kept the reference Selic rate unchanged (as expected) at 15.05%, but with an outlook that it could begin to be lowered in early 2026.
What we expect for today
European stock markets would open with gains of around +0.4%. Currently, S&P futures are up +0.42% (yesterday the S&P 500 ended up +0.02% vs. the European closing bell). Asian markets are rising (China’s CSI 300 +0.15% and Japan’s Nikkei +1.43%).
Today in the UK the BoE will meet. In the US we will learn September’s Philadelphia Fed index and weekly jobless claims.