Report
EUR 100.00
For Business Accounts Only
Markets on edge over monetary policy
The European stock markets fell as the session progressed but still managed to end with gains despite the bearish opening in New Work, with investors still very sensitive to rate prospects (equities were dragged down by the increase in sovereign bond yields awaiting the release of the Fed minutes). Thus, within the Euro STOXX, the best-performing sectors were Energy and Basic Resources (closely linked to raw materials, which rallied following the previous day’s sharp correction due to the poor activity data in China), along with Telecoms and Utilities, whereas Technology (one of the most sensitive to rises in yields and hardest-hit by the lower investment guidance from microchip manufacturers) was the worst performer. On the macro side, in the US, July’s industrial output and utilisation of installed capacity climbed above expectations, whereas July’s real estate sector data was a mixed bag (albeit showing further deterioration). In the Euro zone and Germany, the Zew sentiment index (outlook) deteriorated more than expected. In US 2Q’22 business results, Home Depot was in line, Walmart and Jack Henry better.
What we expect for today
The European stock markets would again open with gains (for the sixth consecutive day). Currently, S&P futures are up +0.2% (the S&P 500 ended flat vs. the European closing bell). Volatility in the US was largely unchanged (VIX 19.7). Asian markets are rising (China’s CSI 300 +0.55% and Japan’s Nikkei +1.1%).
Today we will learn in the US the minutes of the latest Fed meeting (after the closing bell) and July’s retail sales, in Europe the 2Q’22 GDP and in the United Kingdom July’s inflation. In US business results, Lowe’s and Cisco Systems, among others, will release their earnings.
COMPANY NEWS
IAG, BUY.
The company announced yesterday that it has exercised the option to convert the 7-year unsecured loan of € 100 M to Globalia into a 20% stake in Air Europa.
News of limited impact, as IAG’s intention to exercise the conversion option was already known (we were awaiting approval from all parties) and did not expect any problems in the closing of the transaction. That said, IAG will now focus on the acquisition of the remaining 80%, which we do not expect to be completed before 1 year.
IBERIAN DAILY 17 AUGUST (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: IAG.Markets on edge over monetary policy
The European stock markets fell as the session progressed but still managed to end with gains despite the bearish opening in New Work, with investors still very sensitive to rate prospects (equities were dragged down by the increase in sovereign bond yields awaiting the release of the Fed minutes). Thus, within the Euro STOXX, the best-performing sectors were Energy and Basic Resources (closely linked to raw materials, which rallied following the previous day’s sharp correction due to the poor activity data in China), along with Telecoms and Utilities, whereas Technology (one of the most sensitive to rises in yields and hardest-hit by the lower investment guidance from microchip manufacturers) was the worst performer. On the macro side, in the US, July’s industrial output and utilisation of installed capacity climbed above expectations, whereas July’s real estate sector data was a mixed bag (albeit showing further deterioration). In the Euro zone and Germany, the Zew sentiment index (outlook) deteriorated more than expected. In US 2Q’22 business results, Home Depot was in line, Walmart and Jack Henry better.
What we expect for today
The European stock markets would again open with gains (for the sixth consecutive day). Currently, S&P futures are up +0.2% (the S&P 500 ended flat vs. the European closing bell). Volatility in the US was largely unchanged (VIX 19.7). Asian markets are rising (China’s CSI 300 +0.55% and Japan’s Nikkei +1.1%).
Today we will learn in the US the minutes of the latest Fed meeting (after the closing bell) and July’s retail sales, in Europe the 2Q’22 GDP and in the United Kingdom July’s inflation. In US business results, Lowe’s and Cisco Systems, among others, will release their earnings.
COMPANY NEWS
IAG, BUY.
The company announced yesterday that it has exercised the option to convert the 7-year unsecured loan of € 100 M to Globalia into a 20% stake in Air Europa.
News of limited impact, as IAG’s intention to exercise the conversion option was already known (we were awaiting approval from all parties) and did not expect any problems in the closing of the transaction. That said, IAG will now focus on the acquisition of the remaining 80%, which we do not expect to be completed before 1 year.
Underlying
International Consolidated Airlines Group SA
International Airlines Group is an international scheduled airline and global premium airlines. Co.'s principal place of business is London with significant presence at Heathrow, Gatwick and London City airports.
Provider
Sabadell
Research Department
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