EUR 100.00 For Business Accounts Only

IBERIAN DAILY 17 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CAF, CAIXABANK.

Corrections ahead of the Fed
Yesterday corrections on European stock market cancelled out Monday’s gains amid doubts about higher fiscal pressure in Europe and despite the robust macroeconomic data released in the US. In the STOXX 600, all sectors except Basic Resources ended with drops, led by Insurance and Banks. On the macro side, in Germany, September’s ZEW index rose unexpectedly. In the euro zone, July’s industrial output climbed more than expected in MoM terms. In the US, August’s retail sales and industrial output rose more than expected. September’s NAHB confidence in the residential sector was disappointing, remaining at August’s levels. In Brazil, July’s unemployment fell slightly more than expected to 5.6%. In Japan, exports contracted much less than expected in August, whereas the -5.2% drop YoY in imports shows weak internal demand. The BofA’s survey for September has named the UK as the most underweight stock market in Europe (the largest drop since 2004), whereas in Asia investor sentiment reached nearly euphoric levels, with Japan being the preferred market (overweighting reached a high since Oct’23), whereas China is among the most underweighted. In the US, the risk of a new wave of inflation is now the main worry, while cash levels remain at lows (3.9%) and overexposure on the stock market has risen to a seven-month high.
What we expect for today
European stock markets would open with gains of +0.3%, with a mixed performance of cyclical and defensive stocks. Currently, S&P futures are down -0.31% (yesterday the S&P 500 ended unchanged vs. the European closing bell). Asian markets are mixed (China’s CSI 300 +0.53% and Japan’s Nikkei -0.31%).
Today in the US the Fed will hold its meeting and we will learn September’s building permits and housing starts and in the euro zone and the UK August’s final inflation.