IBERIAN DAILY 22 SEPTEMBER (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACS, BANKINTER, BBVA, TOURISM SECTOR.Stock markets end in the red after a more aggressive move by the Fed
The European stock markets recovered early-session losses after the US market opened with gains awaiting the Fed, which in the end raised rates by +75bps as expected. Thus, the Fed hinted at further 75bps rate hikes at the upcoming meetings to bring reference rates at ~4.5% already in 2022 and 2023. This, and Powell’s message admitting that the possibility of a “soft landing” is reduced and that a recession of the US economy cannot be ruled out led the S&P 500/Nasdaq to post heavy losses, strengthening the dollar to 20-year highs. Thus, awaiting the European stock markets to price this in (the rest of stock markets in session have already posted significant losses), yesterday within the Euro STOXX, the best-performing sectors were Chemicals and Utilities, whereas Travel & Leisure and Household Goods saw the biggest corrections. On the macro side, in the US, second-hand home sales contracted less than expected. In Brazil, the Bank of Brazil kept the Selic reference rate unchanged at 13.75%. In Japan, the BoJ kept its monetary policy unchanged and reiterated its dovish message.
What we expect for today
European stock markets would open with drops of around -2.0%, with cyclical sectors dragged down by recession expectations in view of the Fed’s more aggressive rate rise. Currently, S&P futures are down -0.4% (the S&P 500 ended -2.2% lower yesterday vs. the European closing bell). Volatility in the US rose (VIX 27.99). Asian markets are sliding (China’s CSI 300 -0.97% and Japan’s Nikkei -0.53%).
Today we will learn the ECB monthly report and in the US weekly jobless claims, in the UK the BoE will hold its interest rate meeting.
ACS Actividades de Construccion y Servicios is a holding company. Through its subsidiaries, Co.'s activities are divided into the following areas: Construction, engaged in the construction of civil works, and residential and non-residential building construction; industrial services, engaged in the development of applied engineering services, installations and the maintenance of industrial infrastructures in the energy, communications and control systems sectors; services, groups together environmental services, the outsourcing of building maintenance services, logistics and transport services; and concessions, mainly engaged in transport infrastructure concessions.
Banco Bilbao Vizcaya Argentaria is an international financial group, engaged primarily on providing banking services and consumer finance to private individuals and businesses in Spain and Portugal; providing real estate activity in Spain; providing services to international companies and investment banking, capital markets and treasury management services to clients; and providing the banking, insurance and pension businesses in Mexico and the U.S., as well as in South America.
Bankinter is the parent company of a group engaged in banking activities. Services provided include: investment banking; capital market services; financial services insurance; international services such as foreign exchange transactions and travelers' checks; wholesale corporate banking; and retail and private banking services. Co. offers its products and services through the following channels of distribution: branch network; telephone banking, interactive (software) banking; agents; and Internet banking. As of Dec 31 2014, Co. had assets totalling Euro57,332,974,000 and deposits totalling Euro29,966,129,000.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.