IBERIAN DAILY 15 OCTOBER (ANÃLISIS BANCO SABADELL)
NEWS SUMMARY: BANKING SECTOR, BBVA, FCC, SANTANDER.MARKETS YESTERDAY AND TODAY
A real trade agreement?
The possibility that a trade agreement is actually more remote than Trump announced on Friday supported some profit taking, while China called for new negotiations before signing Phase I of the agreement. On the other hand, US secretary of the treasury S. Mnuchin threatened to reinstate the tariff hike if no deal has been struck by 15/12. In the Euro Stoxx, the worst-performing sectors were cyclicals most strongly linked to global trade, like Basic Materials and Energy, while Financial Services and Autos posted the biggest gains. On the macro side, in the euro zone, August’s industrial output saw its contraction grow more than expected. From the ECB, L. de Guindos stated that the risk of a recession is quite low, although he called for an EU-wide fiscal instrument. As for Brexit, the Irish foreign affairs minister seemed convinced that an agreement would be reached in October, while European leaders warned of the need for more time, and that it is possible that an agreement will not be reached before the summit on 17-18 October. In China, inflation rose more than expected in September, whereas production prices fell more steeply, in line with expectations. In Turkey the US Govt. demanded a ceasefire in Syria and announced the reinstatement of 50% tariffs on steel vs. the current 25%, as well as a halt to the trade negotiations on US$ 100 Bn.
What we expect for today
The markets would open with slight gains, awaiting the start of the US results campaign. Currently, S&P futures are up +0.18% (the S&P 500 was down -0.12% vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 14.57%). The Asian markets that are open are trading with mixed results (Hong Kong -0.13% and Japan +1.93%).
Today in the UK we will learn August’s ILO unemployment rate, in Germany October’s ZEW index and in the US October’s Empire index. In debt auctions: Spain (€ 2.5 Bn in 3M and 9M t-bills) and Germany (€ 4 Bn in bonds due 2021).
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.
Banco Santander is a holding company, providing a range of financial products. Co.'s products and services include: retail banking business that covers all customer banking businesses; wholesale banking business; as well as asset management and insurance business. Co.'s principal operations are in Spain, the U.K., Portugal, Germany, Italy and Latin America. As of Dec 31 2014, Co.'s total assets amounted to Euro1,266,296,000,000 and total customer deposits amounted to Euro647,627,000,000.
Fauji Cement is engaged in the manufacturing and marketing of cement.
Fomento de Construcciones y Contratas is the parent company of a group engaged in sanitation services, cleaning, maintaining, purification and distribution of water, construction of highways, hydraulic works, marine works, air and rail transport infrastructure, urban developments, housing, non-residential buildings, office buildings, toll highways, parking garages, marinas and water treatment plants. Co. is also engaged in the manufacture and sale of cement and cement infrastructures, such as precast concrete elements; and in the financial markets, and real estate development, leasing and tourism.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.