EUR 100.00 For Business Accounts Only

IBERIAN DAILY 20 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: FERROVIAL.

MARKETS YESTERDAY AND TODAY

Stock markets falter as volatility increases
It was a clear session of risk aversion, with the European stock markets posting large losses on fears that the Fed may reduce bond purchases (following the Fed minutes, the consensus is to start this year) and increasing concerns about the impact that the virus is having on the economic recovery and supply chains. Thus, the Euro STOXX fell -1.54% driven once again by sectors linked to Consumption and Luxury Goods, despite the better performance of defensive sectors such as Utilities or Household Goods. On the macro side, in the US, August’s Philadelphia Fed manufacturing index came in worse than expected for the fourth consecutive month, whereas the weekly jobless claims came in above expectations.
What we expect for today
The European stock markets would post new losses amid doubts over the global economic recovery at a time when activity in China is slowing and the Fed has certified an early withdrawal of stimulus.
Currently, S&P futures are down -0.30% (the S&P 500 ended 0.13% higher vs. its price at the closing bell in Europe). Volatility in the US increased (VIX 21.97). Asian markets are falling again (China’s CSI -2.54% and Japan’s Nikkei -0.90%).
Today we will learn in Germany July’s production prices and in the UK July’s retail sales.