EUR 100.00 For Business Accounts Only

IBERIAN DAILY 30 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACERINOX, ELECTRICITY SECTOR.

ECB could raise rates by 75bps in its next meeting
It was a negative session on both sides of the Atlantic, which continue to be penalised by the outlook given by the Central Banks in Jackson Hole, that interest rates will continue to be raised to fight inflation, despite the economic downturn. The IBEX fell below 8,000 points in its ninth straight day of losses. In the Euro STOXX, almost all sectors closed in the red, led by Technology and Utilities, with the best performers being Energy and Autos. The EC president, Ursula von der Leyen, announced a plan is being drawn up to intervene on the electricity market and slow skyrocketing electricity prices. On the macro side, in the US the Dallas Fed manufacturing activity index recovered less than expected. In Japan July’s unemployment rate remained at 2.6%, as expected.
What we expect for today
European markets are rallying, awaiting measures to be taken in the emergency review of the European electricity market. Currently, S&P futures are up +0.3% (the S&P 500 ended practically unchanged vs. the European closing bell). Volatility in the US rose (VIX 26.21). Asian markets are mixed (China’s CSI 300 -0.7% and Japan’s Nikkei +1.2%).
Today in the euro zone we will learn July’s economic sentiment index and in Spain & Germany August’s inflation. In debt auctions: Italy (5Y, 10Y and 15Y bonds).