Report
EUR 100.00
For Business Accounts Only
ECB ceases rate hikes
Debt tightening in view of the possibility an interest rate ceiling has been reached underpinned the gains on European stock markets. In the Euro STOXX, almost all the sectors ended in positive numbers (19 out of 20), with Real Estate and Construction the best performers, whereas Autos ended with losses and Food rose the least. On the macro side, the ECB unexpectedly raised rates by +25bps, leaving the refinancing rate at 4.5%, although at the same time it suggested the end of the cycle. Separately, the organisation cut growth forecasts to 0.7% in 2023 (-0.2pp vs. previously), to 1.0% in 2024 (-0.5pp vs. previously) and to 1.5% in 2025 (-0.1pp vs. previous), whereas it expects to continue to be far from the inflation target until at least 2025. In the US, weekly jobless claims rose less than expected, whereas August’s core retail sales rose unexpectedly. All this suggests private consumption remains dynamic in 3Q’23 and above the 1.5% QoQ expected by the consensus. In China, August’s industrial output and retail sales speeded up more than expected whereas investments moderated and home prices dropped again, with new home prices falling at the fastest pace in the past 10 months. The PBoC announced that it will cut the mandatory reserve coefficient for all banks by -25bps starting on 15 September in order to aid recovery, expecting to release up to US$ 75 Bn.
What we expect for today
European stock markets would open with gains of around +1.0%, with the Luxury and Basic Materials sectors performing well, although these gains would begin to be reeled in towards the end of the session. Currently, S&P futures are up +0.22% (the S&P 500 ended up +0.10% vs. the European closing bell). Volatility in the US fell (VIX 12.82). Asian stock markets are mixed (China’s CSI 300 -0.41%, Japan’s Nikkei +1.32%).
Today in the euro zone the Ecofin meeting will be held, in the US we will learn September’s Empire manufacturing index, August’s industrial output and September’s U. of Michigan confidence index and in Brazil July’s retail sales.
IBERIAN DAILY 15 SEPTEMBER (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ELECTRICITY SECTOR.ECB ceases rate hikes
Debt tightening in view of the possibility an interest rate ceiling has been reached underpinned the gains on European stock markets. In the Euro STOXX, almost all the sectors ended in positive numbers (19 out of 20), with Real Estate and Construction the best performers, whereas Autos ended with losses and Food rose the least. On the macro side, the ECB unexpectedly raised rates by +25bps, leaving the refinancing rate at 4.5%, although at the same time it suggested the end of the cycle. Separately, the organisation cut growth forecasts to 0.7% in 2023 (-0.2pp vs. previously), to 1.0% in 2024 (-0.5pp vs. previously) and to 1.5% in 2025 (-0.1pp vs. previous), whereas it expects to continue to be far from the inflation target until at least 2025. In the US, weekly jobless claims rose less than expected, whereas August’s core retail sales rose unexpectedly. All this suggests private consumption remains dynamic in 3Q’23 and above the 1.5% QoQ expected by the consensus. In China, August’s industrial output and retail sales speeded up more than expected whereas investments moderated and home prices dropped again, with new home prices falling at the fastest pace in the past 10 months. The PBoC announced that it will cut the mandatory reserve coefficient for all banks by -25bps starting on 15 September in order to aid recovery, expecting to release up to US$ 75 Bn.
What we expect for today
European stock markets would open with gains of around +1.0%, with the Luxury and Basic Materials sectors performing well, although these gains would begin to be reeled in towards the end of the session. Currently, S&P futures are up +0.22% (the S&P 500 ended up +0.10% vs. the European closing bell). Volatility in the US fell (VIX 12.82). Asian stock markets are mixed (China’s CSI 300 -0.41%, Japan’s Nikkei +1.32%).
Today in the euro zone the Ecofin meeting will be held, in the US we will learn September’s Empire manufacturing index, August’s industrial output and September’s U. of Michigan confidence index and in Brazil July’s retail sales.
Provider
Sabadell
Research Department
Other Reports from Sabadell
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.