EUR 100.00 For Business Accounts Only

IBERIAN DAILY 22 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: IAG, TELEFÓNICA.

Markets doubtful awaiting Powell in Jackson Hole
European stock markets closed better than they opened, with some indices like the FTSE 100 managing to end with slight gains, whereas the DAX and IBEX ended practically flat. In the STOXX 600, the sectors rising the most were Energy, Banks and Basic Materials, with the biggest drops coming in Media, Consumer Goods and Chemicals. On the macro side, in the euro zone August’s preliminary manufacturing PMI rose more than expected, whereas the services index fell slightly, in line with expectations, and August’s consumer confidence fell slightly more than expected, which on the whole continues to suggest weak growth in the euro zone. In the US, August’s manufacturing PMI rose more than expected, whereas the services index fell less than expected. Weekly jobless claims rose more than expected and the Philadelphia Fed index fell more than expected. In Japan, inflation slowed its rise less than expected in July, whereas without food and energy the figure repeated at 3.4% YoY. In trade talks, the US and Europe signed the agreement from late July that includes a 15% tariff in the near future even for autos (vs. 27.5% currently) and medicines (although here the US Govt. has not made its position clear), and where the alcoholic drinks sector has not received special treatment. In US business results, Walmart released disappointing earnings, Ross Stores was in line and Workday beat expectations.
What we expect for today
European stock markets would open with slight losses of -0.2%. Currently, S&P futures are flat (the S&P 500 ended -0.3% lower vs. the European closing bell). Asian markets are mixed (China’s CSI 300 +1.5% and Japan’s Nikkei -0.1%).
Today in the US J. Powell will speak at Jackson Hole. In Germany we will learn the final 2Q’25 GDP.