EUR 100.00 For Business Accounts Only

IBERIAN DAILY 18 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ALMIRALL, ENCE, ENDESA, GRIFOLS, ROVI.

Optimism returns to stock markets
It was a positive week for most global indices (with the exception of Mexico and China) following the suggestion to end rate hikes by the ECB and expectations that the Fed confirms a pause in its meeting to be held next Wednesday. Thus, in the Euro STOXX, all the sectors, with the exception of Food and Technology, ended with gains last week, led by Insurance and Energy. On the macro side, in Spain, S&P kept the sovereign rating at A/A-1. As for the ECB, some members continue to bet on further rises and other on the end of rises but all of them agree on not cutting rates before the ned of the 1H’23 although L. de Guindos admitted that the market bet of rate cuts in the summer could materialize if inflation is under control. In the US, mixed data, with August’s industrial production and September’s manufacturing Empire climbing unexpectedly whereas the University of Michigan consumer confidence dropped more than expected in September. In Brazil, July’s retail sales rose more than expected.
What we expect for today
European stock markets would open with slight drops that could increase up to -0.50% in a week with Central Bank meetings (Fed, BoE, BoJ). Currently, S&P futures are up +0.21% (the S&P 500 ended down -0.40% vs. the European closing bell). Volatility in the US rose (VIX 13.79). Asian stock markets are mixed (China’s CSI 300 +0.41%, Japan’s Nikkei was closed, but futures are sliding -0.69%).
Today in the US we will learn August’s residential construction confidence index. As for auctions, Germany will issue € 4 Bn in 12M T-bills.