EUR 100.00 For Business Accounts Only

IBERIAN DAILY 17 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, ALMIRALL, ELECTRICITY SECTOR.

MARKETS YESTERDAY AND TODAY

Profit-taking on the stock markets as volatility increases
The European stock markets ended in the red, affected by Delta variant fears, the worse macro data released in China over the weekend and heightening geopolitical tensions in Afghanistan. Thus, the Euro STOXX 50 fell by -0.58%, driven by the poor performance of sectors such as Retail or Travel & Leisure. On the macro side, in the US, August’s Empire manufacturing index came in worse than expected, accelerating the drop of sovereign bond yields. Regarding the statements made by Fed members, Rosengreen would be in favour of announcing a reduction in bond purchases in September, which would begin in October and end by mid 2022 provided that the positive employment data continue. From the geopolitical front, the Taliban declared the end of the war in Afghanistan with the seizure of Kabul, as western countries evacuated their citizens with the city’s airport in chaos. In this regard, China promised to play a constructive role in the reconstruction of the country, whereas Russia is readying to recognise the new Islamic State.
What we expect for today
Profit-taking would continue on the European stock markets on Delta variant fears. Meanwhile, the situation in Afghanistan might become a destabilising factor for the markets in the medium term.
Currently, S&P futures are down -0.28% (the S&P 500 ended +0.90% higher vs. its price at the closing bell in Europe). Volatility in the US increased (VIX 16.12). Asian markets are falling (China’s CSI -0.97% and Japan’s Nikkei -0.04%).
Today, we will pay attention to J. Powell’s statements. Also we will learn in the US July’s retail sales and industrial output data, in the Euro zone the 2Q GDP and in the UK the number of unemployed for July. In debt auctions: Germany (€ 6 Bn in bonds due 2023).