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IBERIAN DAILY 30 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: GRIFOLS, TALGO.

Macroeconomic data fuels stock markets
It was a session of gains at both sides of the Atlantic, with Europe benefiting from better inflation data in Germany in Spain in addition to the fact that the 2Q’24 GDP was raised in the US. In the STOXX 600, most sectors ended with gains, led by Technology and Media vs. Real Estate and Insurance that posted the biggest drops. On the macro side, in the euro zone, August’s economic sentiment rose more than expected due mainly to France (and the influence of the Olympic Games) and to the improvements in industrials, services and retail. In Germany, August’s inflation moderated more than expected to 1.9% YoY and in Spain to 2.2% YoY, the lowest level in one year. From the EC, J. Nagel was in favour of gradual cuts as the inflation target is still far. In the US, the 2Q’24 GDP was raised to tenths to 3.0% Q/Qa thanks mainly to consumption. Weekly jobless claims remained at relatively low levels and in line with expectations. Lastly, July’s pending home sales dropped more than expected. In Japan, July’s retail sales and industrial output recovered less than expected whereas Tokyo’s general and core inflation rose more than expected in August. In China, the government would be studying the possibility of enabling the downward renegotiation of rates in mortgages worth US$ 5.4 Trillion.
What we expect for today
Stock markets would open with a bearish bias, which will not prevent being the best August since 2021. Currently, S&P futures are up +0.25% (the S&P 500 ended -0.76% lower vs. the European closing bell). Asian markets are climbing (China’s CSI +1.69% and Japan’s Nikkei +0.33%).
Today in the euro zone we will learn August’s inflation and July’s unemployment rate, in Germany and Spain July’s retail sales and in the US July’s core consumption deflator and personal outlays.