EUR 100.00 For Business Accounts Only

IBERIAN DAILY 13 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACCIONA, FERROVIAL, MERLIN PROPERTIES.

MARKETS YESTERDAY AND TODAY

Profit taking
Stock markets opened with gains that eased throughout the session to finally end in negative territory, with the exception of Switzerland. In the Euro Stoxx, there was no clear performance in purely defensive sectors, with Chemicals and Utilities leading gains while Banks and Basic Resources saw the biggest drops. On the macro side, there were not many relevant references. In Italy, the motion of confidence to Di Maio is expected on the 20th of August. In Brazil, the economic activity index rose more than expected in June although suggesting an economic drop in the YoY rate in the 2Q’19. In China, the rise in M2 slowed down more than expected in July, while the total financing deteriorated more than expected. On another note, the slowdown in vehicle sales moderated in July to -4.3% YoY vs. -9.6% previously although electric car sales saw the first drop in 2 years (-4.7% YoY). Finally, the Chinese government insisted it will not devaluate the yuan. In Argentina, Macri’s defeat in the primary elections with a wide margin was not welcomed by the market with the Argentinean peso depreciating above US$ 60 on the domestic market and the stock exchange and 10 & 20Ydebt in US$/€ falling -30%, which dragged down Spanish companies, such as Prosegur, Prosegur Cash, BBVA and Telefónica. In US business results, Sysco’s were in line with expectations.
What we expect for today
Stock markets would open lacking definition. Currently, the S&P futures are up +0.2% (the S&P 500 was -0.34% lower vs. its price at the closing bell in Europe). Volatility in the US climbed (VIX 18.8%). Asian markets are sliding (Hong Kong -1.7-5 and Japan -1.2%).
Today in Germany we will learn August’s ZEW index and July’s final inflation, in Spain July’s final inflation, in the UK June’s-July’s job data, and in the US SMEs confidence data and July’s inflation. In US business results, Advance Auto, among others. will release its earnings.