EUR 100.00 For Business Accounts Only

IBERIAN DAILY 07 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: GLOBAL DOMINION, IAG.

Dark week for stock markets
European stock markets recovered slightly on Friday after a week of losses marked by Fitch’s rating downgrade on the US due to the fiscal deterioration expected over the next three years and the reduced governability. Thus, in the Euro STOXX, all the sectors except Energy were in the red, led by Telecoms and Food. On the macro side, in the euro zone June’s retail sales recovered more than expected but remain in negative territory. In Germany, factory orders rose unexpectedly. In the US, July’s non-farm job creation came in below expectations, although the unemployment rate fell -0.1% to 3.5% thanks to the active population. Separately, salary gains rose more than expected in July, which would back the Fed’s intention of raising rates again. In China, authorities raised the warning level in order to respond to flooding in the north of the country. In 2Q’23 US business results, Alliant Energy and Evergy were in line, while Apple released disappointing earnings.
What we expect for today
European stock markets would open with slight gains after the employment readings in the US. Currently, S&P futures are up +0.41% (the S&P 500 was down -0.5% vs. the European closing bell). Volatility in the US rose (VIX 17.10). Asian stock markets are mixed (China’s CSI 300 -0.56%, Japan’s Nikkei +0.09%).
Today in the Germany we will learn June’s industrial output and in the euro zone August’s SENTIX index. In US 2Q’23 Results, Tyson Foods and Paramon Global, among others, will release their earnings.