EUR 100.00 For Business Accounts Only

IBERIAN DAILY 04 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: IBERDROLA.

Calm after the storm
European stock markets recovered some ground after Tuesday’s corrections and the widening of bond yields. The Ibex ended its negative performance after sliding -2.5% in 3 sessions. Thus, in the STOXX 600, almost all sectors (16/20) closed with gains, led by Pharma and Retail vs. the worse performance of Energy and Telecommunications. On the macro side, in the euro zone, August’s final services PMI was cut slightly. In Spain, the services PMI fell more than expected although remaining above levels consistent with growth. In the US, the Fed Beige book depicted a modest/nil growth scenario with corporate confidence dragged down by tariffs and that of households by the loss of purchasing power. JOLTs job vacancies fell slightly vs. the previous month to the lowest reading since Sept’24 and July’s factory orders recovered in line with expectations although remaining in negative territory. In China, BYD cut its 2025 sales target by -16%. Meanwhile, the Chinese government would be studying the possibility of implementing measures to reduce stock market speculation after August’s strong rally.
What we expect for today
European stock markets would open flat with a bearish bias. Currently, S&P futures are up +0.10% (the S&P 500 ended +0.19% higher vs. the European closing bell). Asian markets are mixed (China’s CSI 300 -2.15% and Japan’s Nikkei +1.55%).
Today in the euro zone we will learn July’s retail sales and in the US August’s non-manufacturing ISM, August’s ADP private employment survey, July’s trade balance and weekly jobless claims.