EUR 100.00 For Business Accounts Only

IBERIAN DAILY 09 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: FERROVIAL, GRIFOLS.

MARKETS YESTERDAY AND TODAY

Financial stocks welcome the good employment data in the US
The European stock markets rose and hit new annual highs, underpinned by the bullish US opening following employment data far above expectations that reduced fears of a stalled economic recovery due to new Covid outbreaks and increased the likelihood of tapering in the US. Within the Euro STOXX, the financial sector (Banks and Insurance) led gains thanks to both ING’s and Allianz’s good results and the rising IRR. On the negative side was the technology sector, which was the only sector that posted losses along with distribution of household and food products. Thus, on the macro side, in the US, job creation beat expectations in July, bringing the unemployment rate to 4.5%, and hourly earnings accelerated to 0.4% (vs. 0.3% previously and expected). June’s wholesale inventories also grew above expectations. All this has fuelled the tapering debate, as hinted at by Kaplan’s comments towards a gradual programme, with Treasuries purchases being reduced by US$ 10 Bn/month at a first stage and MBS purchases by US$ 5 Bn. In Germany, June’s industrial output fell more than expected. In the Euro zone, the implementation of restrictions on US travellers is being considered due to the rise in the number of Delta cases. In Mexico, May’s gross fixed investment recovered somewhat more than expected. In US business results, Norwegian Cruise Line came in as expected.
What we expect for today
European stock markets would open flat or with minor falls. Currently, S&P futures are practically unchanged (the S&P 500 ended +0.18% higher vs. its price at the closing bell in Europe). Volatility in the US dropped slightly (VIX 17.20). Asian markets are mixed (China’s CSI +0.3% and Japan’s Nikkei is closed for holiday).
Today we will learn in the Euro zone, August’s Sentix index, in Germany July’s trade balance, and in Mexico July’s CPI. In debt auctions, Germany and France will issue T-bills. In US business results, Tyson Foods, eBay and Walt Disney are among the few that have not released their earnings yet in the 2Q’21 results season.