IBERIAN DAILY 04 OCTOBER (ANÃLISIS BANCO SABADELL)
NEWS SUMMARY: AENA, LIBERBANK.MARKETS YESTERDAY AND TODAY
Stock markets try to stabilise
Europe ended above Wednesday’s support level despite a new disappointing non-manufacturing ISM figure in the US . Within the Euro STOXX, we saw significant sector dispersion, with cyclicals such as Basic Resources and Travel&Leisure posting the biggest falls while Food and Technology were the best performers. On the macro side, in the euro zone, September’s final PMI lost 4 tenths vs. the preliminary data due mainly to the worst data of Germany. However, August’s retail sales rose in line with expectations. From the ECB, L. de Guindos expects rates to remain low for some time although he admitted the damage on banking spreads while O. Rehn suggested that the measures adopted in September are valid and sufficient. As for Brexit, the president of the European Council, D. Tusk, showed his willingness to continue talks although he stressed they will support Ireland. Previously, the European Parliament rejected B. Johnson’s plan, giving him one week to present a new plan or face another delay. On another note, the EC warned that if the US imposes tariffs on European imports (as announced, worth US$ 7.5 Bn), it will retaliate. In the US, September’s non-manufacturing ISM fell more than expected to 52.6 (lows since Aug’16 and with the employment component falling sharply), suggesting 2Q’19 growth more in line with the 1.9% q/qa forecasted by the consensus. The rest of references were also weaker, with the greater slowdown in capital goods orders excluding the most volatile components standing out, which would hint at stagnation in capital good investments. Separately, R. Clarida, Vicepresident of the Fed, was confident in the dynamism of the US macroeconomy. In Mexico, September’s consumer confidence improved unexpectedly. In India, the services PMI fell to 48.7 in September vs. the previous 52.4.
What we expect for today
Stock markets would open with gains, fuelled by the US although with the eyes set on today’s job data that could be disappointing again (the figures released suggest creation levels slightly below 140,000 expected), which would boost short-term debt but also the question on the magnitude of the recession for 2020 and not so much its likelihood.
Currently, S&P futures are up +0.18% (the S&P 500 was +0.78% higher vs. its price at the closing bell in Europe). Volatility in the US dropped (VIX 19.12%). The Asian markets that are open are mixed (Hong Kong -0.45% and Japan +0.21%).
Today in the US we will learn the non-farm job creation, the unemployment rate, September’s wage gains and August’s trade balance.
Aena SME SA, formerly Aena SA, is a Spain-based company primarily engaged in the airports operation. Its activities are divided into four segments: Airports, which comprises Aeronautical subdivision, responsible for the management of airports, jetways, security, handling, cargo and fuel services, among others, as well as Commercial subdivision, including duty-free and specialty stores, restaurant services, car rental, as well as banking services and advertising; Services outside the terminal, which manages real estate assets, such as parking lots, warehouses and lands; International, which comprises operations of Company's subsidiary, Aena Desarrollo Internacional SA, that invests in other airport owners principally in Mexico, Colombia and the United Kingdom; and Others, encompassing corporate activities. It manages tourism, hub and regional airports, as well as heliports and general aviation areas. Furthermore, its destination range comprises Europe, the Americas, Asia and Africa.
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.