EUR 100.00 For Business Accounts Only

IBERIAN DAILY 06 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: EUSKALTEL.

MARKETS YESTERDAY AND TODAY

Despite uncertainties surrounding Covid and China, the S&500 hit new record highs
European stock markets continued to see moderate gains during the entire session, underpinned by the bullish US opening that hit new record highs and by the good earnings season. In the Euro STOXX, Industrials and Leisure (both linked to airline traffic and tourism) in addition to Insurance and Real Estate led gains vs. the falls of discretionary consumer sectors with exposure to China (boycott to Western retailers), such as Retail and Consumer Goods and Basic Resources. On the macroeconomic level, in Germany, June’s factory orders grew more than expected. In the US, June’s trade deficit rose slightly more than expected. In the UK, the BoE meeting ended without changes in the monetary policy, as expected although warning about a possible tightening starting next year. In Japan, leading indicators were in line with expectations. In US results, Cigna, Kellogg and Viacom were in line, Monster Beverage, Motorola, News Corp, AIG and Moderna beat expectations and Duke Energy and Edison came in worse than expected.
What we expect for today
European stock markets would open flat or with minor falls. Currently, S&P futures are practically unchanged (the S&P 500 ended +0.18% higher vs. its price at the closing bell in Europe). Volatility in the US dropped slightly (VIX 17.20). Asian markets are mixed (China’s CSI -0.8% and Japan’s Nikkei +0.25%).
Today in Spain and Germany we will learn June’s industrial output, in the US non-farm employment, unemployment rate and average hourly gains, and final wholesale inventories, all for July, and in Mexico May’s fixed investment. In US business results, we only stress the release of Norwegian Cruise Line.