EUR 100.00 For Business Accounts Only

IBERIAN DAILY 18 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS.

Strong sales in Europe
European stock exchanges saw a strong correction in a session marked by the Treasury’s tightening after the strong US data and the release of the Fed minutes. This dragged down the Euro STOXX index over the session, with Energy and Basic Resources being the best-performing sectors, while Industrial (Adyen slid around -40% yesterday after releasing results) and Consumer Goods saw the biggest drops. On the macro side, in the US, weekly jobless claims moderated in line with expectations, whereas the Philadelphia Fed index improved much more than expected in August, returning to positive territory. In Japan, July’s inflation remained at 3.3% from the previous month (above expectations), whereas the core data moderated to 3.1% (in line). The BoJ’s new governor, Ueda, was cautious about a change in the ultra-loose monetary policy, as the price rise is not due to the increase in consumption. In China, the crisis of the real estate sector continues, with several real estate groups facing default problems, whereas sales slow down. In this regard, the PBoC outlined it will maintain a strict policy to back the recovery. In US 2Q’23 Results, Walmart, Ross Stores and Applied Materials beat expectations.
What we expect for today
European stock markets would see a bearish opening again amid China’s uncertainties and the lack of bullish drivers. Currently, S&P futures are down -0.34% (the S&P 500 was -0.45% lower vs. the European closing bell). Volatility in the US rose (VIX 17.89). Asian stock markets are sliding (China’s CSI 300 -0.64%, Japan’s Nikkei -0.86%).
Today in the UK we will learn July’s retail sales, in the euro zone, July’s final inflation, in Mexico June’s retail sales and in the US July’s existing home sales. In US 2Q’23 Results, Estee Lauder and Deere&Co, among others, will release their earnings.