EUR 100.00 For Business Accounts Only

IBERIAN DAILY 21 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: IAG.

MARKETS YESTERDAY AND TODAY

Profit taking in Europe
European stock markets traded in the red all session, although in the US there was enough of a recovery to close with mall gains. In the Euro STOXX, only Real Estate closed with gains followed by Media with the smallest loss, whereas Banks and Autos fell the most. On the macro side, in the euro zone the ECB’s meeting minutes warned of the uncertain economic recovery, but in any event it will be uneven and partial. In this regard, the ECB will wait until September to have more information and be able to make a decision in December’s meeting. Separately, construction saw its contraction ease in June to -5.9% YoY from the previous -10.5%. On another note, Merkel and Macron wish to avoid any scenario of a new lockdown in Europe. In the US, the Philadelphia Fed index disappointed, falling more than expected in August, whereas weekly jobless claims rose unexpectedly. Lastly, July’s leading indicators rose less than expected. In Japan, general inflation rose in line with expectations in July to 0.3% YoY, whereas the core figure remained at 0.4% YoY (below expectations). Meanwhile August’s manufacturing PMI rose slightly to 46.6 from 45.2, and services fell from 45.4 to 45.0. In US business results, Ross Stores and Estee Lauder released earnings that came in below expectations.
What we expect for today
Stock markets would open with gains of around +0.5%. Currently, S&P futures are up slightly (the S&P 500 ended up +0.2% vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 22.7%). Asian markets are rising (Japan +0.3% and Hong Kong +1.3%).
Today in the euro zone we will learn August’s preliminary PMIs, in the UK preliminary PMIs and July’s retail sales and in the US August’s PMIs, Conference Board consumer confidence and second-hand home sales.