IBERIAN DAILY 23 AUGUST (ANÃLISIS BANCO SABADELL)
NEWS SUMMARY: LIBERBANK, RED ELÉCTRICA.MARKETS YESTERDAY AND TODAY
Stock markets affected by macro data and comments from the Fed
Despite a slightly bullish opening, European stock markets ended in the red, dragged down by poor activity data and the comments against further rate cuts made by Fed members. Within the Euro STOXX, only Banks, Basic Resources and Autos saw gains, with Technology and Consumer Goods posting the biggest drops. On the macro side, in the Euro zone, the manufacturing PMI recovered more than expected in August (thanks to France), whereas the services PMI climbed unexpectedly to 53.4, which continues to back strong growth rates in private consumption. Separately, consumer confidence fell more than expected in August, despite standing at high levels. In monetary policy, the ECB minutes showed the view of some members that a combination of rate cuts and monetary stimulus would be more efficient than adopting separate measures. In the US, the manufacturing and services PMIs for August contracted more than expected, with the former standing below 50. Lastly, the Kansas Fed index fell unexpectedly in August. On another note, E. George and P. Harker agreed with E. Rosengren’s view of not cutting rates in September. In Japan, July’s inflation slowed more than expected, whereas core inflation climbed unexpectedly. In US business results, Gap and Salesforce released better results than expected.
What we expect for today
European stock markets would open with gains of up to +0.6% ahead of Powell’s speech at the Jackson Hole symposium, where he will insist in further mid cycle adjustments, which could disappoint markets.
Currently, S&P futures are up +0.3% (the S&P 500 closed +0.26% vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 16.70%). Asian markets are rising (Japan +0.4% and Hong Kong +0.5%).
Today, J. Powell will give a speech at the J. Hole symposium. Also we will learn: in the US, new home sales; in Mexico, the IGAE activity index for June.
Red Electrica is engaged in the transmission of electrical energy, the operation of the system and the management of the transmission network in the Spanish electricity system. In addition, through its subsidiaries, Co. is engaged in the acquisition, holding and management of foreign securities, co-ordination of international exchanges, provision of telecommunications services for third parties, provision of consultancy, engineering and construction services outside the Spanish electricity system, securing of funds, carrying out of financial transactions and provision of financial services.
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