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IBERIAN DAILY 11 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: IBERDROLA.

Spain breaks away from the pack
It was a transitional session on European stock markets, which ended mixed awaiting the ECB meeting today. By indices, the IBEX 35 once again stood out with a breakaway gap aiming at the resistance level of 15,458, thanks to the strong performance by Inditex (+6% on the day). In the STOXX 600, Retail (hailing Inditex’s results) and Banks led the gains, whereas Travel & Leisure and Chemicals suffered the biggest corrections. On the macro side, in Spain July’s industrial output sped up to 2.55 YoY. In the US, general and core production prices slowed their YoY advance more than expected. Meanwhile, Trump once again called for immediate and aggressive rate cuts. In Brazil, inflation fell in August in line with expectations. In Japan, production prices fell more than expected, but they do not dispel the expectations of a rate cut by the BoJ by the end of the year. In trade matters, Mexico will impose a series of tariffs on products from China (and other Asian countries), where we highlight the 50% tariff on vehicles (vs. the current 20%) and 35% on Chinese steel.
What we expect for today
European stock markets would open with a slightly bearish slant, with better performance by Technology stocks, which were impacted by the skyrocketing Oracle share price (this was also felt in Asia). Currently, S&P futures are up +0.1% (yesterday the S&P 500 ended unchanged vs. the European closing bell). Asian markets are rising (China’s CSI 300 +1.6% and Japan’s Nikkei +0.7%).
Today the ECB will meet. In Brazil we will learn July’s retail sales, in Mexico July’s industrial output and in the US weekly jobless claims and August’s general and core inflation.