EUR 100.00 For Business Accounts Only

IBERIAN DAILY 14 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: N/A.

Greater expectations of rate cuts fuel stock markets
Following the good inflation data released in the US, the Secretary of the Treasury, Scott Bessent, demanded new rate cuts of more than 150bps this year, starting with -50bps in September (R. Bostic, Fed member, stated he would see a -25bps cut appropriate in 2025 and thanks to the strength of the job market the Fed could still wait before cutting rates). Against this backdrop and in the absence of additional references, the US stock exchange beat its record high again, as well as European indices. Thus, in Europe in the STOXX 600 Technology (after being the worst performer on Tuesday) was the best-performing sector, as well as Consumer Goods and Pharma (all of them hit by the tariff/regulatory uncertainty in the US) vs. the drops of Energy (dragged down by the drop in crude oil and erasing Tuesday’s gains). On the macro side, in the euro zone and Germany July’s inflation confirmed the preliminary data. In the UK, both the preliminary 2Q’25 GDP and June’s industrial output grew more than expected. In Brazil, June’s retail sales fell sharply, as opposed to expectations.
What we expect for today
European stock markets would open with corrections of around -0.2%. Currently, S&P futures are -0.15% lower (the S&P 500 ended +0.17% higher vs. the European closing bell). Asian markets are mixed (China’s CSI 300 +0.2% and Japan’s Nikkei -1.4% after three session of gains and dragged down by the widening of Japan’s debt yields and the appreciation of the yen after S. Bessent’s comments).
Today in the euro zone we will learn June’s industrial output and the second revision of the 2Q’25 GDP, in the US weekly jobless claims and July’s production prices.