EUR 100.00 For Business Accounts Only

IBERIAN DAILY 14 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ALMIRALL, ELECTRICITY SECTOR, NATURGY.

MARKETS YESTERDAY AND TODAY

Europe recovers thanks to the Ibex
In a transition session without relevant macroeconomic data, the Ibex put an end to three consecutive drops to lead European gains, recovering 8,800 points. Thus, within the Euro STOXX, Energy and Automobiles were the best relative performers vs. the drops of Basic Resources and Retail. On the macro side, in Spain, the Govt. disclosed a scheme to moderate the electricity bill via reducing both the excess remuneration of non-emitting power generation plants (until March’22) and the electricity tax rate (from 5.11% to 0.4%). In the United Kingdom, Brexit Minister Frost claimed a “serious” negotiation with the EU over Northern Ireland. In Japan, July’s final industrial output contracted unexpectedly.
What we expect for today
We expect the opening to be very much sideways, awaiting US inflation data, which would give more clues on tapering. Currently, S&P futures are up +0.2% (the S&P 500 ended flat vs. its price at the closing bell in Europe). Volatility in the US decreased (VIX 19.37). Asian markets are trading with mixed results (China’s CSI -0.5% and Japan’s Nikkei +0.6%).
Today in Spain we will learn August’s final inflation, in the UK July’s ILO unemployment rate, in the US August’s inflation. In debt auctions: Spain (€ 5.5 Bn in 3 & 9M T-bills), Holland (€ 2 Bn in bonds due 2052), Italy (€ 5.75 Bn in bonds due 2024, 2028 and 2051) and Germany (€ 5 Bn in bonds due 2023).