EUR 100.00 For Business Accounts Only

IBERIAN DAILY 08 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ARCELOR MITTAL, BBVA, FERROVIAL.

MARKETS YESTERDAY AND TODAY

Technical rally on European markets without an improved outlook to act as a catalyst
European markets recorded modest gains during yesterday’s session. In the Euro Stoxx, the sectors linked to prime materials continued to fall due to the weak yuan and the doubts on growth, and thus Basic Materials and Energy led the drops along with Banks (in view of the new drop in sovereign yields). Travel & Leisure was the sector rising the most, bolstered by the negotiations of Ryanair with its pilots. On the macro side, in Germany June’s industrial output fell much more than expected. This morning in Japan the current account surplus in June fell more than expected. In China, exports grew unexpectedly and imports fell less than expected. In US business results, TripAdvisor and Monster Beverages released worse earnings than expected, Fox was in line and AIG beat expectations.
What we expect for today
A slightly bearish opening in European stock markets. Currently, the S&P futures are up +0.8% (the S&P 500 was +1% higher vs. its price at the closing bell in Europe). Volatility in the US eased (VIX 19.5%). The yuan remains stable at around 7.05 against the dollar. Asian markets are seeing moderate gains (Hong Kong +0.7% and Japan +0.6%).
Today in Spain we will learn June’s industrial output, in the US June’s final wholesale inventories and in Mexico July’s inflation. In debt auctions, Italy will issue € 6.5 Bn in 12M t-bills. In US business results, Viacom, Kraft Heinz, CBS and News Corp, among others, will release their earnings.