EUR 100.00 For Business Accounts Only

IBERIAN DAILY 28 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: GRIFOLS, NH HOTELES.

MARKETS YESTERDAY AND TODAY

A good session for value stocks
The European indices fell gradually as the session progressed following a mixed US opening, with value beating growth significantly on both sides of the Atlantic and the Ibex returning to 9,000 points for the first time since June. Thus, the best-performing sectors in the Euro STOXX were Banks and Energy, whereas Household Goods and Technology were the worst relative performers. On the macro side, in the US, August’s durable goods orders increased more than expected thanks to the transportation component, whereas in the core segment, the rise was in line with expectations. In Spain, the Govt. announced that the ERTE scheme will be extended until 28 Feb 2022, with more restrictive conditions from November. In Mexico, the IGAE economic activity index slowed more than expected YoY in July. In China, the Central Bank continues to inject liquidity into the banking system and promised to protect consumers with an exposure to the real estate market. Separately, industrial earnings slowed for the sixth consecutive month to 10.1% YoY (vs. 16.4% previously).
What we expect for today
The European stock markets would post gains lower than +0.5%, with oil companies continuing their good performance. Currently, S&P futures are up +0.1% (the S&P 500 ended unchanged vs. its price at the closing bell in Europe). Volatility in the US increased (VIX 18.76). Asian markets are trading with mixed results (China’s CSI +0.1% and Japan’s Nikkei -0.3%).
Today we will learn in the US September’s Richmond manufacturing index and consumer confidence data, and a preview of August’s trade balance, and in Mexico August’s unemployment rate. In debt auctions: Italy (€ 6 Bn in 6M T-bills) and the Netherlands (€ 5 Bn in bonds due 2029).