EUR 100.00 For Business Accounts Only

IBERIAN DAILY 21 OCTOBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: FERROVIAL, LIBERBANK, NATURGY.

MARKETS YESTERDAY AND TODAY


Focused on the British Parliament and Brexit
European stock markets fluctuated within a narrow range, ending with drops and awaiting the approval of the MoU between the EU and B. Johnson’s administration at the British Parliament, the vote of which has been postponed for today after the approval of an amendment last Saturday that forced the PM to ask for an extension. In the Euro STOXX, Basic Resources and Insurance were the best-performing sectors vs. Automobiles (following Renault’s profit warning) and Food that were the worst performers. On the macroeconomic level, in Japan, the adjusted trade deficit came in below expectations although exports slowed down to a greater extent than expected. In China, the rise in home prices moderated in September and the PBoC kept the 1Y loan benchmark at 4.2%, unexpectedly. In US Results Coca-Cola released disappointing results, Schlumberger and American Express in line, NVR above expectations.
What we expect for today
Stock markets will open with slight gains despite the setback of the British PM and the slight depreciation of the pound. Currently, S&P futures are down -0.02% (the S&P 500 was down -0.18% vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 14.25%). Asian markets are climbing (Hong Kong +0.26% and Japan +0.28%).
Today in Germany we will learn September’s production prices. In US Results, Halliburton and Cadence, among others, will release their earnings. As for auctions, Holland’s Treasury will issue up to € 2 Bn in 3 & 6-M T-bills and France´s up to € 4.3 Bn in 3, 6 & 12M T-bills.