EUR 100.00 For Business Accounts Only

IBERIAN DAILY 25 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: FERROVIAL, TALGO, TELECOM SECTOR.

MARKETS YESTERDAY AND TODAY

Without certainty from the US
Doubts on the recovery pace when the new US fiscal stimulus programme is questioned (Goldman Sachs cut its 4Q’20 growth forecasts by half) put an end to the mid-session rally attempt. This was followed by the comments made by the EU health commissioner, encouraging countries to take measures against the progress of Covid-19, and some disappointment in September’s IFO in Germany that rose less than expected. With this in mind, in the Euro STOXX, Financials and Cyclicals were the best-performing sectors, as well as Banks (offsetting the strong correction from the past days) and Automobiles, while Retail and Basic Resources saw the biggest drops. In the US, the recovery of the real estate market continues to provide a positive surprise, as evidenced by August’s new home sales (getting closer to high and unsustainable levels) that underpinned the good performance of cyclical consumption and building materials sectors. In Mexico, the BoM cut, as expected, the reference interest rate by 25bps to 4.25%, while in Turkey, the Monetary Authority raised rates unexpectedly by 2pp to 10.25% to tackle the depreciation of the lira.
What we expect for today
European stock markets would open with slight gains after Republicans and Democrats agreed to resume the negotiations on a fiscal stimulus package, but amid doubts regarding the second wave of infections and awaiting the announcement of new mobility restrictions in Madrid. Currently, S&P futures are up +0.5% (the S&P 500 was down -0.3% vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 28.51%). Asian markets are trading with mixed results (Japan +0.5% and Hong Kong -0.1%).
Today in the euro zone we will learn August’s M3, in Mexico July’s IGAE economic activity index and in the US September’s preliminary capital and durable goods orders. As for auctions, Italy will issue € 7 Bn in 6M T-bills.