EUR 100.00 For Business Accounts Only

IBERIAN DAILY 03 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACERINOX, ELECTRICITY SECTOR, FERROVIAL.

MARKETS YESTERDAY AND TODAY

Stock markets show caution, awaiting the US job data
Moderate gains continued in European stock markets in a cautious session, awaiting the US job data, with the exception of the Ibex, which ended in negative territory near the psychological reference of 9,000 points. The S&P hit a new record high, underpinned by cyclical companies. Thus, in the Euro STOXX (mixed close in sectors), Energy and Basic Resources led gains vs. the drops of Food and Real Estate. On the macroeconomic level, in the euro zone, July’s production prices climbed above expectations. In the US, July’s factory orders (in MoM terms) rose more than expected and weekly jobless claims dropped more than expected, with lay-offs falling to the lowest level in more than 24 years in August, suggesting that the job market continue to recover despite the increasing number of new Covid-19 cases. In Japan, PM Y. Suda announced he will not run for re-election, with the stock exchange reacting with strong gains (+2). In China, the services Caixin index dropped more than expected to negative territory.
What we expect for today
European stock markets would open with slight gains after the new high on the S&P 500 and the mixed performance in Asia, where Chinese tech stocks continue to fall due to the new regulations and Japan rallied after the PM’s announcement. Currently, S&P futures are up +0.2% (the S&P 500 ended -0.17% lower vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 16.41). Asian markets are trading with mixed results (China’s CSI -0.4% and Japan’s Nikkei +1.95%).
Today in the US we will learn non-farm employment, average hourly gains and the services PMI (all for August), in Germany, August’s services PMI, and in the euro zone, retail sales and August’s final services and composite PMI.