EUR 100.00 For Business Accounts Only

IBERIAN DAILY 06 OCTOBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: BANKING SECTOR, SANTANDER, TELEFÓNICA.

Euro STOXX 50 hits record high from 2000
European stock markets continued to climb, and the Euro STOXX 50 managed to hit a high since 2000, ignoring the shutdown in the US. In the STOXX 600, the best-performing sectors were Pharma, Technology and Consumer Goods, whereas Energy (following the drop in crude prices), Insurance and Travel & Leisure ended with the biggest corrections on the week. On the macro side, in the euro zone September’s final services PMI was lowered slightly. In the US September’s non-manufacturing ISM fell more than expected to 50.0, whereas the final services PMI for September was raised to 54.2. In Japan, S. Takaichi was elected President of the LDP party, and thus in two weeks she will become the first female PM of the country, and she would also push an agenda of pro growth in technology, defence and manufacturing and would alleviate household costs. Lastly, OPEC+ has decided to increase oil production starting in November by 137,000 b/d (same as the increase announced for October), diluting the risk of a larger increase.
What we expect for today
European stock markets would open with gains of +0.2%, with the oil sector recovering thanks to the rise in Brent crude. Currently, S&P futures are up +0.26% (yesterday the S&P 500 ended -0.49% lower vs. the European closing bell). Asian markets are rising (China’s CSI 300 closed and Japan’s Nikkei +4.82%).
Today in Spain we will learn August’s industrial output and in the euro zone October’s SENTIX index and August’s retail sales.