EUR 100.00 For Business Accounts Only

IBERIAN DAILY 27 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: OHLA, SANTANDER.

IBEX unable to break 9,400 points
Another bearish session in Europe in view of the fears that the Fed will end up raising rates more than expected in the final part of the year. In this regard, N. Kashkari did not rule out the Fed having to raise rates substantially in order to keep inflation in check. With this in mind, the Euro STOXX was once again in the red, with Insurance and Pharma being of the few sectors escaping punishment, while Technology and Real Estate suffered the biggest losses. On the macro side, disappointing data out of the US, where July’s new home sales contracted more than expected and September’s Conference Board consumer confidence fell more than expected. The Philadelphia Fed non-manufacturing and Dallas services indices fell more than expected in September. In the euro zone, from the ECB, R. Holzmann pushed to stop reinvesting in the PEPP (Pandemic Emergency Purchase Programme). In China, industrial profits recovered +17.2% in August vs. the previous -6.7%.
What we expect for today
European stock markets would open flat with some bullish slant and with growth underpinned by some ease in interest rates. Currently, S&P futures are up +0.3% (the S&P 500 ended -0.4% lower vs. the European closing bell). Volatility in the US rose (VIX 18.90). Asian stock markets are mixed (China’s CSI 300 +0.2%, Japan’s Nikkei -0.2%).
Today in the euro zone we will learn August’s M3 and in the US August’s durable goods orders. In debt auctions: Germany (€ 4 Bn in bonds due 2033).