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EUR 100.00
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The rally cools
It was a transitional session on the markets, awaiting the release of the Fed’s September meeting minutes yesterday and US inflation data today. In the STOXX 600, the sectors closing in positive territory saw small gains, led by Real Estate and Food, whereas Retail and Consumer Goods ended with the biggest drops. On the macro side, the ECB released mixed messages, with K. Knot stating that the organisation still has a long road ahead in order to beat inflation, whereas P. de Cos believes enough would have been done, with both suggesting there is still much of the monetary tightening effect to be seen. In Brazil, September’s inflation fell slightly more than expected to 5.2%. In the US, the Fed’s meeting minutes from September showed division among members on the decision to maintain rates and the need to raise them in the near future; in any event the consensus is that there is still work to do, but the economic situation demands caution be shown. Fed member M. Bowman warned that rates will need to continue to be raised in order to bring prices back to stable ground, whereas C. Waller was in favour of a break. Lastly, production prices rose more than expected in September due to energy costs. In Japan, August’s machinery orders fell more than expected. In China, the sovereign fund would have begun to take stakes in banks in order to support stock markets.
What we expect for today
European stock markets would open with moderate gains, awaiting US macro data. Currently, S&P futures are up +0.3% (the S&P 500 ended +0.4% higher vs. the European closing bell). Volatility in the US fell (VIX 16.00). Asian stock markets are rising (China’s CSI 300 +0.8%, Japan’s Nikkei +1.6%).
Today in the US we will learn September’s inflation. In US business results, American Bank and Bank of South Carolina, among others, will release their earnings. Debt auctions: Germany (€ 5.5 Bn in bonds due 2025).
IBERIAN DAILY 12 OCTOBER (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ELECTRICITY SECTOR.The rally cools
It was a transitional session on the markets, awaiting the release of the Fed’s September meeting minutes yesterday and US inflation data today. In the STOXX 600, the sectors closing in positive territory saw small gains, led by Real Estate and Food, whereas Retail and Consumer Goods ended with the biggest drops. On the macro side, the ECB released mixed messages, with K. Knot stating that the organisation still has a long road ahead in order to beat inflation, whereas P. de Cos believes enough would have been done, with both suggesting there is still much of the monetary tightening effect to be seen. In Brazil, September’s inflation fell slightly more than expected to 5.2%. In the US, the Fed’s meeting minutes from September showed division among members on the decision to maintain rates and the need to raise them in the near future; in any event the consensus is that there is still work to do, but the economic situation demands caution be shown. Fed member M. Bowman warned that rates will need to continue to be raised in order to bring prices back to stable ground, whereas C. Waller was in favour of a break. Lastly, production prices rose more than expected in September due to energy costs. In Japan, August’s machinery orders fell more than expected. In China, the sovereign fund would have begun to take stakes in banks in order to support stock markets.
What we expect for today
European stock markets would open with moderate gains, awaiting US macro data. Currently, S&P futures are up +0.3% (the S&P 500 ended +0.4% higher vs. the European closing bell). Volatility in the US fell (VIX 16.00). Asian stock markets are rising (China’s CSI 300 +0.8%, Japan’s Nikkei +1.6%).
Today in the US we will learn September’s inflation. In US business results, American Bank and Bank of South Carolina, among others, will release their earnings. Debt auctions: Germany (€ 5.5 Bn in bonds due 2025).
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Sabadell
Research Department
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