EUR 100.00 For Business Accounts Only

IBERIAN DAILY 02 OCTOBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: BANKING SECTOR.

Stock exchanges rise with poor data
Despite the doubtful opening bell European stock markets ended with gains after the poor US data underpin rate cuts by the Fed. Little progress was made in the shutdown, the federal government would have frozen US$ 26 Bn for Democratic-leaning states (US$ 18 Bn in infrastructures for the city of New York). In the STOXX 600, Pharma and Energy (due to more stable crude oil prices) led gains whereas Household and Travel&Leisure were the only sectors ending in negative territory. On the macro side, in the euro zone, September’s final manufacturing PMI fell less than expected although remaining below 50 (slowdown territory). On another note, September’s inflation climbed to 2.2% (in line), whereas the core data remained at the previous 2.3% (in line). In the US, September’s manufacturing ISM improved slightly more than expected, with increases in the job heading and decreases in inflation. As for the job market, September’s ADP private employment survey reported a drop of 32,000 jobs (the worst reading since March’23). The Supreme Court kept governor L. Cook in her position at the Fed for the time being. On the trade front, D. Trump would have put on hold the tariff plans for pharmaceuticals whereas the EU would be studying the possibility of imposing 50% tariffs on Chinese steel. China would be restricting the use of the European telecom kit suppliers Nokia and Ericsson to its networks.
What we expect for today
European stock markets would open with gains in a session with similar drivers to those seen yesterday. Currently, S&P futures are up +0.25% (yesterday the S&P 500 ended +0.25% higher vs. the European closing bell). Asian markets are sliding (China’s CSI 300 is closed and Japan’s Nikkei -0.8%).
Today in Spain we will learn September’s number of unemployed, in the euro zone August’s unemployment rate and in the US August’s weekly jobless claims and industrial orders.