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The Fed reiterates its goal of bringing inflation under control
The European stock markets ended the week with losses of more than -1%. In view of the lack of macro references, the investors’ attention was focused on rate hike expectations (the Fed minutes and the comments made by some members during the week pointed to a lower pace of hikes going forward, but curbing inflation remains the top goal), and deteriorating growth prospects in China. Thus, within the Euro STOXX, Energy (thanks to the recovery of crude oil prices) and Household Goods were among the few sectors that posted gains, whereas Real Estate, Banks, Retail and, to a lesser extent, Autos, were the worst performers. On the macro side, in Germany, July’s industrial output climbed above expectations. In the United Kingdom, retail sales moderated its pace of contraction in July, but less than expected (due mainly to Auto and gasolines). Separately, in China the banks continue to try to stabilise the real estate market with cuts to reference rates in 1Y-5Y loans, just after the Central Bank lowered rates by -10bps.
What we expect for today
European stock markets would open with slight losses while the Fed’s prospects are weighed and awaiting Powell’s speech from Jackson Hole at the end of the week. Currently, S&P futures are down -0.45% (the S&P 500 ended down -0.07% vs. the European closing bell). Volatility in the US rose slightly (VIX 20.6%). Asian markets are trading with mixed results following the measures taken on interest rates (China’s CSI 300 +0.69% and Japan’s Nikkei -0.47%).
Today in the US we will learn the Chicago Fed index for July. Debt auctions: France (3M, 6M and 12M t-bills).
IBERIAN DAILY 22 AUGUST (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: IAG.The Fed reiterates its goal of bringing inflation under control
The European stock markets ended the week with losses of more than -1%. In view of the lack of macro references, the investors’ attention was focused on rate hike expectations (the Fed minutes and the comments made by some members during the week pointed to a lower pace of hikes going forward, but curbing inflation remains the top goal), and deteriorating growth prospects in China. Thus, within the Euro STOXX, Energy (thanks to the recovery of crude oil prices) and Household Goods were among the few sectors that posted gains, whereas Real Estate, Banks, Retail and, to a lesser extent, Autos, were the worst performers. On the macro side, in Germany, July’s industrial output climbed above expectations. In the United Kingdom, retail sales moderated its pace of contraction in July, but less than expected (due mainly to Auto and gasolines). Separately, in China the banks continue to try to stabilise the real estate market with cuts to reference rates in 1Y-5Y loans, just after the Central Bank lowered rates by -10bps.
What we expect for today
European stock markets would open with slight losses while the Fed’s prospects are weighed and awaiting Powell’s speech from Jackson Hole at the end of the week. Currently, S&P futures are down -0.45% (the S&P 500 ended down -0.07% vs. the European closing bell). Volatility in the US rose slightly (VIX 20.6%). Asian markets are trading with mixed results following the measures taken on interest rates (China’s CSI 300 +0.69% and Japan’s Nikkei -0.47%).
Today in the US we will learn the Chicago Fed index for July. Debt auctions: France (3M, 6M and 12M t-bills).
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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