EUR 100.00 For Business Accounts Only

IBERIAN DAILY 08 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACCIONA.

Bank of Japan helps stock market rally continue
With few macro references, and aided by the comments made by the Bank of Japan’s governor that the country would not raise rates until the markets were more stable, confidence is slowly coming back to the markets, and the rally started on Tuesday continued (at the same time sovereign debt yields once again rose, corporate debt insurance fell and the primary bond market was spurred back to life). In Europe, all the sectors in the STOXX 600 rose, led by Banks (benefiting from the rising debt yields), with Leisure (dragged down by the poor results from some US tourism companies that once again reflect tougher conditions for consumption) and some defensive sectors like Food and Consumer Goods performing worse, affected by mixed data out of China that continue to raise doubts on consumption). On the macro side, in Germany June’s industrial output grew more than expected. In 2Q’24 US business results, Walt Disney beat expectations, Hilton and Ralph Lauren were in line and Monster Beverages and Warner Bros released far worse earnings than expected.
What we expect for today
Stock markets would open with losses of around -1%. Currently, S&P futures are down -0.1% (the S&P 500 ended down -2% vs. the European closing bell). Volatility on the S&P500 (VIX) seems to have stabilised at a relatively high 28. Asian markets are mixed (Japan’s Nikkei -0.5% and China’s CSI 300 +0.1%).
Today in the US we will learn weekly jobless claims and in Mexico July’s inflation. In US business results, Eli Lilly, News Corp, Paramount, Gilead Sciences, among others, will release their results.