EUR 100.00 For Business Accounts Only

IBERIAN DAILY 27 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACCIONA.

Political instability returns in France
European stock markets fell, where we once again highlight the CAC (-1.7%), hit by the rising political risk. In the STOXX 600, 16 of 20 sectors fell, led by financials (Banks and Insurance), while defensive sectors like Telecoms and Consumer Goods showed the biggest gains. On the macro side, in France the finance minister, E. Lombard, suggested there is risk of an intervention by the IMF if Bayrou’s government falls in the no confidence vote. In the US, the Conference Board consumer confidence fell less than expected in August, although it remains at low levels. July’s core capital goods orders rose more than expected, and the FHFA housing price index slowed its pace in June. August’s regional leading indicators (Richmond Fed Services, Dallas Fed Services and Texas Fed Services) all beat expectations. In China, industrial profits slowed their contraction in July to .1,5% from the previous -4.3%. In trade matters, today the 50% tariff on India will be activated.
What we expect for today
European stock markets would open with gains of around +0.2%. Currently, S&P futures are flat (the S&P 500 ended +0.4% higher vs. the European closing bell). Asian markets are rising (China’s CSI 300 +0.3% and Japan’s Nikkei +0.2%).
Today in the euro zone we will learn July’s M3 and August’s economic confidence index, in Mexico July’s unemployment rate and in the US weekly jobless claims, the second reading of the 2Q’25 GDP and July’s pending home sales. In US business results, Nvidia will release its earnings.