EUR 100.00 For Business Accounts Only

IBERIAN DAILY 21 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: COLONIAL, UNICAJA.

Last week was marked by sales in Europe
European stock exchanges saw a new correction amid the macroeconomic unbalance in China and the crisis of the real estate sector in the country. Last week almost all sectors in the Euro STOXX fell, with the exception of Retail, and with Industrials and Real Estate leading drops (given the contagion effect from China) and with Retail and Telecommunications sawing the lowest drops. On the macro side, in the euro zone, July’s final inflation confirmed the price moderation at 5.3% in July vs. 5.5% prev., whereas the core data remained at June’s level of 5.5%. This data continues to add pressure on the ECB to raise rates as they remain at relativity high levels whereas the services inflation climbed again. In the UK, July’s retail sales slowed down more than expected. In China, the PBoC disappointed the market by cutting 1Y loan rates less than expected (3.45% vs. 3.55 prev. and 3.4% expected) and 5Y (4.2% vs. 4.2% prev. and 4.05% expected). In US 2Q’23 Results, Estee Lauder y Deere&Co beat EPS expectations.
What we expect for today
European stock markets would open flat with some bullish bias throughout the session, with the eyes on Jackson Hole meeting this week (Friday) and on August’s preliminary PMI data. Currently, S&P futures are slightly down (the S&P 500 was 0.2% higher vs. the European closing bell). Volatility in the US dropped (VIX 15.9). Asian stock markets are mixed (China’s CSI 300 -0.7%, Japan’s Nikkei +0.4%).
Today no relevant data will be released. In US 2Q’23 Results, Nordson, among others, will release their earnings.