EUR 100.00 For Business Accounts Only

IBERIAN DAILY 02 OCTOBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ALMIRALL, BANKING SECTOR, CONSTRUCTION SECTOR, GRIFOLS, IAG.

MARKETS YESTERDAY AND TODAY

Hopes of fiscal deal keep US stock markets in positive territory
Most European stock markets ended virtually flat in a session without macro surprises in the Euro zone and with the US recovering after a slightly disappointing ISM manufacturing index in September, before closing in the black amid hopes of the new stimulus deal.-For the time being, the Congress has approved the democrat’s proposal of US$ 2.2 trillion, which remains far from the amount needed and is not backed by the republicans. Thus, within the Euro STOXX, Retail and Technology saw the biggest gains, while Energy (dragged down by the fall in Brent crude oil) and Pharma were the worst relative performers. In Spain, Madrid will appeal the partial confinement that the Ministry of Health is forcing the region to implement with a resolution that limits mobility on municipalities with a population of over 100,000, more than 10% of positive PCR test results and a bed occupancy rate higher than 35% in intensive care units. From the ECB, the higher personal outlays data than expected in August helped cyclical consumption lead gains in the S&P 500, followed by Technological companies, whereas the ISM manufacturing index continued to hint at strong recovery in activity levels, which led the Industrial sector to increase. In Brazil, September’s manufacturing PMI remained virtually flat vs. August’s levels, hinting at a significant recovery in activity.
What we expect for today
With the excuse of Trump’s testing positive for Covid-19, European stock markets would open with drops of -1.0% that should ease throughout the session. Currently, S&P futures are down -1.4% (the S&P 500 ended largely unchanged vs. its price at the closing bell in Europe). Volatility in the US increased (VIX 26.70). Asian markets are falling (Japan -0.7%).
Today in the euro zone we will learn September’s inflation and the European Council will discuss the recovery fund, in the US September’s unemployment rate and non-farm employment, as well as August’s factory orders.