EUR 100.00 For Business Accounts Only

IBERIAN DAILY 15 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ELECTRICITY SECTOR, IAG, ROVI.

Stock markets continued to rally
European stock markets ended with gains last week, with the Ibex35 remaining near 15,300 pints thanks to financial groups and Inditex. In the STOXX 600, Banks and Industrials were the best performers whereas defensive sectors such as Food and Telecoms posted the biggest drops last week. On the macro side, in the UK, the monthly GDP stagnated unexpectedly in July. In Spain, S&P upgraded the country’s credit rating by one notch to A+ (stable), despite the weakness of the Govt. and the difficulty in approving budgets. Fitch downgraded France’s credit rating to A+ (stable) due to a debt level that could reach 121% of GDP in 2027, while it upgraded that of Portugal to A (stable). In Germany, the CDU would continue to be the winner of the municipal elections in the most highly-populated state ion the country, but the ultra-right-wing party AfD would nearly triple its support to almost 16.5%. In the US, the University of Michigan preliminary consumer confidence deteriorated more than expected in September. In China, August’s industrial output and retail sales both slowed more than expected. On the geopolitical front, more than a dozen Russian drones entered Romanian airspace.
What we expect for today
European stock markets would open with gains of around +0.3% that could ease throughout the session, with doubts surrounding the companies with the closest ties to China, following the worse macro data (luxury, basic materials/steel, etc.). Pre-opening bell, the French CAC had no reaction to the news on the country’s rating downgrade. Currently, S&P futures are up +0.1% (yesterday the S&P 500 ended -0.1% vs. the European closing bell). Asian markets are rising (China’s CSI 300 +0.6% and Japan’s Nikkei closed).
Today in the euro zone we will learn July’s trade balance and in the US September’s Empire manufacturing index.