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At the end of today’s report, and during the entire results season, we will include a presentation with previews for the 2Q’22 results to be released over the coming days in Spain.
Inflation starts to lose momentum
The ease in US’s July inflation was welcomed by European markets, which led to debt curve tightening and rises in stock markets. Thus, in the Euro STOXX, purchases prevailed, with Basic Resources and Consumer Goods being the best performers whereas defensive sectors such as Pharma and Telecoms being among the few industries ending with losses. On the macro side, in Germany, July’s final inflation confirmed the preliminary data at 7.5%. The Govt. announced a € 10 Bn package of fiscal measures to offset the impact on purchasing power. The package includes tax cuts and new direct aid to families. In the US, July’s inflation slowed down more than expected due to lower energy prices (with a drop of around -20% in petrol prices on the month), standing at 8.5%. The core data remained unexpectedly at the previous 5.9%. This led the market to now foresee a rise of “only” 50bps at the FOMC meeting due in September. However, L. Evans (Chicago Fed, dovish, without vote) later outlined that the institution will continue to raise rates at least until 2023 to control inflation. On another note, June’s final wholesale inventories rose less than expected. On the political front, N. Pelosi pledged that China would not normalise the current level of military pressure on Taiwan. In US Results, Fox released disappointing figures and Walt Disney beat expectations.
What we expect for today
European stock markets would see slight gains again, benefiting from lower recession fears. Currently, S&P futures are up +0.18% (the S&P 500 ended +0.6% higher vs. the European closing bell). Volatility in the US dropped (VIX 19.74). Asian markets are climbing (China’s CSI 300 +1.8% and Japan’s Nikkei +1.2%).
Today in the US we will learn July’s production prices and weekly jobless claims, and in Mexico BoM meeting. In US business results, Cardinal Health, Illumina and ResMed, among others, will release their earnings.
IBERIAN DAILY 11 AUGUST + 2Q’22 RESULTS PREVIEWS (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: n.a.At the end of today’s report, and during the entire results season, we will include a presentation with previews for the 2Q’22 results to be released over the coming days in Spain.
Inflation starts to lose momentum
The ease in US’s July inflation was welcomed by European markets, which led to debt curve tightening and rises in stock markets. Thus, in the Euro STOXX, purchases prevailed, with Basic Resources and Consumer Goods being the best performers whereas defensive sectors such as Pharma and Telecoms being among the few industries ending with losses. On the macro side, in Germany, July’s final inflation confirmed the preliminary data at 7.5%. The Govt. announced a € 10 Bn package of fiscal measures to offset the impact on purchasing power. The package includes tax cuts and new direct aid to families. In the US, July’s inflation slowed down more than expected due to lower energy prices (with a drop of around -20% in petrol prices on the month), standing at 8.5%. The core data remained unexpectedly at the previous 5.9%. This led the market to now foresee a rise of “only” 50bps at the FOMC meeting due in September. However, L. Evans (Chicago Fed, dovish, without vote) later outlined that the institution will continue to raise rates at least until 2023 to control inflation. On another note, June’s final wholesale inventories rose less than expected. On the political front, N. Pelosi pledged that China would not normalise the current level of military pressure on Taiwan. In US Results, Fox released disappointing figures and Walt Disney beat expectations.
What we expect for today
European stock markets would see slight gains again, benefiting from lower recession fears. Currently, S&P futures are up +0.18% (the S&P 500 ended +0.6% higher vs. the European closing bell). Volatility in the US dropped (VIX 19.74). Asian markets are climbing (China’s CSI 300 +1.8% and Japan’s Nikkei +1.2%).
Today in the US we will learn July’s production prices and weekly jobless claims, and in Mexico BoM meeting. In US business results, Cardinal Health, Illumina and ResMed, among others, will release their earnings.
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Sabadell
Research Department
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