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IBERIAN DAILY 27 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: GRUPO CATALANA OCCIDENTE, IBERDROLA.

China continues to spur the markets
Another rally following the previous day’s drops, and with stimulus measures in China in the spotlight, where in addition to those already known, there could be capital injections in the country’s main banks over the coming days. The IBEX rose above 11,900 points, hitting a high since 2010. In the STOXX 600, the best-performing sectors were Consumer Goods and Basic Materials vs. Energy, which was the worst performer with losses of more than -3.0%. On the macro side, in the euro zone the M3 for August rose more than expected, with both consumer and corporate loans increasing. In Germany, October’s consumer confidence recovered slightly more than expected. In Spain, August’s retail sales rose more than expected. In the US, the 2Q’24 GDP was raised +0.1pp to 3.0%, August’s durable goods orders rose more than expected and August’s pending home sales recovered less than forecast. In Japan, September’s Tokyo inflation moderated in line with expectations. In China, the government is planning to issue up to US$ 248 Bn under the special sovereign fund to boost consumption and investments in equipment and to support the finances of local governments. On another note, industrial profits slowed down -17.8% in August vs. 4.1% previously. In Mexico, the BoM cut the benchmark interest rate by -25bps, as expected, to 10.5%. As for US companies, Micro (chips) provided a surprise after upgrading its guidance significantly.
What we expect for today
Stock markets would open gains of around +0.4%, leading to the best September on the EuroSTOXX 50 since 2019. Currently, S&P futures are flat (the S&P 500 ended -0.04% lower vs. the European closing bell). Asian markets are rising (China’s CSI +4.36% and Japan’s Nikkei +1.57%).
Today in the euro zone we will learn September’s economic confidence index, in Spain September’s inflation and the 2Q’24 GDP, in Germany September’s number of unemployed, in the US August’s personal outlays and the core consumption deflator and in Brazil August’s unemployment rate.