IBERIAN DAILY 11 AUGUST (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: CIE AUTOMOTIVE.Market confident rate hikes are over
The first half of the European session was underpinned by the confidence that the Fed will halt rate hikes after inflation data was released. In the Euro STOXX, almost all the sectors rose, with Consumer Goods and Insurance leading the way, while Industrials and Media ended as the worst performers. On the macro side, in the US, weekly jobless claims rose unexpectedly. As for price indicators, July’s inflation rose slightly less than expected (3.3%), whereas the core figure fell in line with expectations (4.7%). Fed Fund futures do not price in an additional rate hikes in the last stretch of 2023, with the maximum rate as of Nov’23 standing at 5.40%. Subsequently, Daly cooled expectations after stating that there is still work to do. In Mexico, the Banxico interest rate meeting brought no surprises and unanimously kept rates at 11.25% (for the third straight meeting) in view of a complex inflationary backdrop, but with risks growing. In US business results, Ralph Lauren released disappointing earnings, while News Corp beat expectations.
What we expect for today
European stock markets would open with drops, correcting the euphoria from yesterday’s session. Currently, S&P futures are down -0.36% (the S&P 500 was down -0.5% vs. the European closing bell). Volatility in the US was unchanged (VIX 15.85). Asian stock markets are falling (China’s CSI 300 -1.2%, Japan’s Nikkei closed for a bank holiday).
Today in the UK we will learn June’s industrial output and 2Q’23 GDP, in Spain July’s final inflation, in Mexico June’s industrial output, in Brazil July’s inflation and in the US July’s final producer prices and August’s U. of Michigan confidence (preliminary).
CIE Automotive is the parent company of an industrial group formed by several companies that are engaged in the design, manufacture and sale of automobile component and sub-units on the world market. In addition, Co. is also engaged in the bio-fuels business which is in the initial stages of development and is made up of various companies devoted to the production and distribution of bio-fuels.
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