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IBERIAN DAILY 23 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ARCELOR MITTAL.

The Ibex returns to the 9,300-point level
The main European indices managed to keep gains of between +0.5% and +0.8% even though gains eased at the end of the session following the weak macro data released in the US and the threats of new rate cuts in the US. In the Euro STOXX, Technology and Retail Estate were the best performers, whereas Insurance and Food were the only sectors ending in negative territory. On the macro side, in Spain, the King proposed the PP leader as a candidate for the investiture with few possibilities of going through. In the US, July’s existing home sales dropped more than expected, whereas the Richmond Fed manufacturing index dropped less than expected in August. In Japan, August’s manufacturing PMI improved slightly to 49.7 vs. 49.6 prev. whereas that services rose to 54.3 from 53.8 in June. On another note, according to the press, the government would extend the energy subsidy that will predictably end in September, planning a new fiscal stimulus package to be announced in September. In US 2Q’23 Results, Medtronic came in better than expected and Lowe in line, whereas Macy’s, despite beating the EPS estimates, continued to show significant caution on consumption and warning about a faster and greater deterioration in lending than expected.
What we expect for today
European stock markets would open with gains of as much as +0.30%, fuelled by moderation in debt yields and despite the weak PMI data expected. Currently, S&P futures are up +0.3% (the S&P 500 was -0.2% lower vs. the European closing bell). Volatility in the US dropped (VIX 17.0). Asian stock markets are mixed (China’s CSI 300 -0.8%, Japan’s Nikkei +0.4%).
Today in the euro zone, UK and US we will learn August’s preliminary PMI, and also July’s existing home sales in the US. In US 2Q’23 Results, NVIDIA, Autodesk and NetAPP, among others, will release their earnings.