EUR 100.00 For Business Accounts Only

IBERIAN DAILY 26 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ENAGÁS.

Euro STOXX 50 stays above 5,400
European stock markets closed with losses of -0.8% in a session that ended worse than it began. In the STOXX 600, most sectors (17/20) were in the red, with bond proxies like Construction and Utilities leading the way, hurt by the rise in long-term public debt curves, whereas Media and Financial Services ended with the biggest gains. On the macro side, in Germany August’s IFO rose more than expected, reaching a high over the past two years. In France, the PM F. Bayrou has called a no-confidence vote on 08 September after trying to impose upon Parliament his € 43.8 Bn fiscal austerity budget and reaching a deficit of 4.6% in 2026. From the ECB, M. Kazaks made less dovish statements, suggesting there is no rush to lower rates further. In the US, building permits and new home sales for July contracted less than expected, while the Dallas Fed manufacturing index for August and the Chicago Fed activity index for July once again deteriorated. Separately, Trump announced that he has fired L. Cook (member of Fed Governors Council) due to the mortgage allegations, but Cook refuses to resign. Likewise, the President threatened tariffs and restrictions on exports in response to the tax on digital services.
What we expect for today
European stock markets would open with losses of around -0.5%, where French companies would continue to be penalised by the political risk, including Vinci, BNP and Société Générale and ACS (through Abertis, which has motorways in the country) in Spain. Currently, S&P futures are flat (the S&P 500 ended -0.3% lower vs. the European closing bell). Asian markets are falling (China’s CSI 300 -0.1% and Japan’s Nikkei -0.9%).
Today in the US we will learn August’s Conference Board consumer confidence, July’s capital goods orders and June’s FHFA housing prices index.