IBERIAN DAILY 03 OCTOBER (ANÃLISIS BANCO SABADELL)
NEWS SUMMARY: BBVA, ELECTRICITY/GAS SECTOR, LIBERBANK, OHL.MARKETS YESTERDAY AND TODAY
Markets continue to fall
Stock markets fell sharply in view of the doubts on growth being raised by the poor macro data. Within the Euro STOXX, all sectors posted losses, with Construction and Energy seeing the biggest the drops and Travel & Leisure and Real Estate being the best relative performers. On the macro side, in Spain, the number of unemployed came in better than expected, although affiliation to Social Security saw the smallest increase in a month of September since 2013. In Europe, according to The Times, an extension to Brexit in the UK would be considered, even if the PM does not request it. In the US, September’s ADP private employment survey showed a larger drop than expected in job creation, and along with the manufacturing ISM data, suggests disappointing non-farm employment data on Friday. Meanwhile, the WTO has given the green light to the US to impose tariffs on European products totaling € 7.5 Bn (10% on aircraft and 25.0% on other products, such as wine, olives and whiskey).
What we expect for today
The markets would open slightly bearish, but they will keep a close eye on the non-manufacturing ISM, which could lead to another disappointment and more profit taking. Airbus and luxury sector stocks would be affected by the trade war spreading to Europe. Currently, S&P futures are up +0.43% (the S&P 500 was down -2.70% vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 20.56%). The Asian markets that are open are falling (Hong Kong -0.55% and Japan -1.87%).
Today in the euro zone we will learn September’s final services PMI and August’s retail sales, in the US weekly jobless claims, September’s non-manufacturing ISM and August’s durable goods orders and in Mexico September’s consumer confidence. In debt auctions: Spain (€ 4.25 Bn in bonds due 2029, 2048 and I/L 2027) and France (€ 9.5 Bn in bonds due 2029, 2050 and 2055).
Banco Bilbao Vizcaya Argentaria is an international financial group, engaged primarily on providing banking services and consumer finance to private individuals and businesses in Spain and Portugal; providing real estate activity in Spain; providing services to international companies and investment banking, capital markets and treasury management services to clients; and providing the banking, insurance and pension businesses in Mexico and the U.S., as well as in South America.
Obrascon Huarte Lain is an international concession and construction groups based in Spain. Co. maintains significant operations in 30 countries across all five continents. Co. is engaged in hospital and railway construction, transport infrastructure concessions, oil and gas, energy, solids handling and fire protection systems and international contracts. Co.'s operations are organized along four divisions: OHL Concesiones, OHL Construccion, OHL Industrial y OHL Desarrollos. Co. is also engaged in real state project developments of mixed use managed by the international hotel chains.
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