EUR 100.00 For Business Accounts Only

IBERIAN DAILY 09 OCTOBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CAF, CAIXABANK, SANTANDER.

Awaiting sovereign debt yield data
European stock markets ended the week by reeling in part of the losses incurred, paying close attention to the performance of sovereign debt yields, which in the US hit a high since 2007 and were strengthened on Friday by the strong US employment data. Thus, the Euro STOXX 50 ended the week with losses of around -1.5%, in line with the Dax, whereas the IBEX fell more than -2.5%, falling below the 9,200 point reference. The best-performing sectors in the STOXX 600 were Media and Technology (with slight gains), whereas Utilities and Energy (hit by the falling crude prices) ended with the biggest losses on the week (more than -4%). On the macro side, in Germany industrial orders rose more than expected in August due to the sharp rise in the computer, electronic and optical product manufacturing sector. Separately, the German Govt. now estimates -0.4% GDP’23 growth (vs. 0.4% in April) and 1.3% and 1.5% for 2024-25. In the US, non-farm job creation rose unexpectedly in September, whereas salary gains slowed slightly more than expected, with the unemployment rate remaining at 3.8%. On the geopolitical front, the Israeli Govt. declared war against Hamas and suggests the conflict could be a long one, and there is fear it will spread in the Middle East, shooting oil prices upwards.
What we expect for today
European stock markets would open with losses of up to -0.5% in view of the geopolitical uncertainty. Currently, S&P futures are down -0.75% (the S&P 500 ended +0.14% higher vs. the European closing bell). Volatility in the US dropped (VIX 17.45). Asian stock markets are sliding (China’s CSI 300 -0.65%, Japan’s Nikkei -0.26%).
Today in Germany we will learn August’s industrial output, in the euro zone October’s SENTIX investor confidence and in Mexico September’s inflation.