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IBERIAN DAILY 02 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CELLNEX, GRIFOLS.

August ended with stock market gains
The last session of August ended with generalised gains for stock markets that benefited from good macro data that alleviated the effect from Nvidia’s unconvincing results. Thus, in the STOXX 600, most sectors ended with gains last week, led by Chemicals and Household vs. Consumer Goods and Retail, the only sectors that dropped. On the macro side, in the euro zone, August’s inflation dropped to 2.2% with the core data at 2.8% and July’s unemployment rate improved to 6.4%. In Germany and Spain, July’s retail sales came in above expectations. In Germany, the far-right party won its first regional elections in Thuringia (second in Saxony), whereas the support to the government coalition dropped significantly. In the US, July’s core consumption deflator stood at 2.6% YoY (one tenth below expectations), with July’s personal income and outlays being in line with expectations. In China, Caixin manufacturing PMI dropped more than expected in August but that of services rose slightly, leaving the composite PMI at 50.1 vs. 50.2 previously.
What we expect for today
Stock markets would open with some bearish bias although they will recover throughout the session. Currently, S&P futures are down -0.16% (the S&P 500 ended +0.85% higher vs. the European closing bell). Asian markets are sliding (China’s CSI -1.11% and Japan’s Nikkei -0.13%).
Today in Spain, Germany and the euro zone we will learn August’s manufacturing PMI, in Brazil and Mexico August’s manufacturing PMI and the US will be closed for holiday (labour day).