EUR 100.00 For Business Accounts Only

IBERIAN DAILY 26 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: INDRA.


MARKETS YESTERDAY AND TODAY

Decreasing performance at yesterday’s session
The initial gains that almost reached +1.00% in European indices eased throughout the session to negative territory. In the Euro STOXX, we saw a mixed performance, with a more favourable bias on growth/cyclical in Travel&Leisure and Basic Resources that led gains while Energy and Construction registered the biggest drops. On the macroeconomic level, in Germany, August’s IFO climbed unexpectedly thanks to the current situation component and the quarterly average would be consistent with -5.0% GDP growth vs. -11..3% YoY registered in the 2Q’20, slightly raised from -11.7% preliminary thanks to the better-than-expected performance of investments. On another note, the government announced that the wage support plan will be extended to the end of 2021 to underpin the recovery. In the US, the Conference Board consumer confidence fell unexpectedly in August, dragged down by the poor job expectations while new home sales climbed more than expected in July to record levels from Dec’06 and home prices according to the FHFA rose more than expected in June. On another note, the Covid-19 cads show a decreasing trend with a -21% drop in the past week. In Mexico, June’s retail sales rose slightly less than expected. In US Results, Best Buy, Medtronic, Salesforce, HP and Autodesk came in better than expected.
What we expect for today
European stock markets would open with slight gains in a session with low volume and awaiting Jackson Hole’s meeting to be held tomorrow. Currently, S&P futures are unchanged (the S&P 500 ended up +0.5% vs. its price at the closing bell in Europe). Volatility in the US dropped (VIX 22.00 %). Asian markets are flat (Japan 0.0% and Hong Kong 0.0%).
Today in the US we will learn July’s durable good orders, and in Mexico the 2Q’20 GDP. As for auctions, Germany will issue € 3.5 Bn in bonds due 2035, Portugal bonds due 2027 and 2030 and Italy zero-coupon bonds due 2022. In US Results, NetApp will release its earnings.