EUR 100.00 For Business Accounts Only

IBERIAN DAILY 13 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CHANGES TO THE IBEX, EUSKALTEL, REAL ESTATE SECTOR.

MARKETS YESTERDAY AND TODAY


The ECB stops halfway, requesting more fiscal policy
M. Draghi’ speech partly met expectations, cutting deposit rates (to -0.5%) with a gradual penalisation of the excess reserve, reactivating the QE for € 20 Bn (with strong opposition from France, Germany and the Netherlands), lowering the forward guidance (low rates until inflation shows convergence) and extending the maturities of TLTROs. All of this went practically unnoticed for the banking sector (+0.3%) although in the Euro STOXX, Leisure&Travel and Energy were the worst-performing sectors (once more hit by the drop in crude oil prices) vs. the gains of Utilities and Food. On the macroeconomic level, in the euro zone, July’s industrial output slowed down more than expected although the previous data was upgraded. In the UK, the government released the Yellowhammer document that considers the scenarios of an unorderly Brexit with significant problems for the supply of food, power and transport, contradicting B. Johnson’s speech. In the US, August’s core inflation climbed more than expected (to 2.4% YoY), reaching Sept’08 levels. On the political front, D. Trump warned that the ECB’s monetary policy is harming US exports, and although he gave indications of a possible limited agreement, the rumour was denied by sources within the Govt. In Turkey, the Central Bank cut the reference interest rate to 16.5% from the previous 19.75%, above expectations.
What we expect for today
Stock markets would show a flat performance at the opening bell. Currently, S&P futures are up +0.09% (the S&P 500 closed unchanged vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 14.91%). The Asian markets that are open are climbing (Hong Kong +0.57% and Japan +0.97%).
Today in Spain we will learn August’s final inflation, in the US August’s retail sales and the University of Michigan’s preliminary confidence for September, and in Brazil July’s economic activity index. A for ratings, S&P will revise Portugal’s (BBB stable).


COMPANY NEWS

CHANGES TO THE IBEX. No changes at yesterday’s meeting, as expected.
The Technical Advisory Committee of the IBEX 35 met at yesterday’s closing bell for its follow-up meeting (held at the beginning of March and September). As expected, no changes were made to its composition or free-float factors. We recall that no changes are usually made in follow-up meetings. The next meeting of the Technical Advisory Committee will be held on the 12th of December’19.