EUR 100.00 For Business Accounts Only

IBERIAN DAILY 10 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, NATURGY, TELEFÓNICA.

MARKETS YESTERDAY AND TODAY

Seasonal session on the stock markets
The European stock markets traded near their annual highs in a session with little traded volume, typical of the summer season. Within the Euro STOXX, the best-performing sectors were Pharma and Insurance, whereas Autos and Real estate (following the softening of debt curves) saw the day’s biggest drops. On the macro side, in the Euro zone, August’s Sentix index contracted more than expected, dragged down by the evolution of the Covid-19 variants and their effect on the economic recovery, and fears that inflation may not be as transitory as expected. The subindices hint at a ZEW index falling to 50 over the next few months. In Germany, July’s trade balance saw its surplus increase more than expected. In Mexico, July’s inflation moderated slightly, in line with expectations. In the US, R. Bostic was in favour of lowering job purchases if job data continue July’s trend for one or two months, suggesting 2022 as the beginning of rate rises. Other members such as Rosengreen and Barkin were in favor of announcing the tapering in September so that it starts in autumn given the low impact from the delta variant on demand and wage pressure. In US business results, Tyson Foods came in better than expected and FISH Network and Viatris in line.
What we expect for today
The European stock markets would open sideways, with value stocks performing worse after the sell-off on raw materials, despite the fact that crude oil has turned around early this morning. Currently, S&P futures are down -0.11% (the S&P 500 ended flat vs. its price at the closing bell in Europe). Volatility in the US increased (VIX 16.72). Asian markets are mixed (China’s CSI -0.1% and Japan’s Nikkei +0.2% following yesterday’s holiday).
Today we will learn in Germany August’s Zew index, and in the US the unit labour costs and non-farm productivity data for 2Q’21. In US business results, Sysco and TransDigm, among others, will release their earnings.