EUR 100.00 For Business Accounts Only

IBERIAN DAILY 04 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: LOGISTA, TELEFÓNICA.

August starting off poorly
The third day of August and the third day of losses in European equity markets. Interest rates continued to rise in the US, and the results campaign moved forward with few surprises. In the Euro STOXX, only Retail, Energy and Banks traded in positive numbers, while Technology and Utilities fell the most. On the macro side, in the euro zone the final services PMI was cut, but it remained in growth territory. In the UK, the BoE raised interest rates as expected by +25bps to 5.25%, the highest level from the past 15 years. A. Bailey did not rule out the possibility of rates being raised further in upcoming meetings. In the US, July’s services ISM slowed more than expected, June’s factory orders rose as expected to 2.3% and weekly jobless claims rose moderately, although layoffs fell to an 11-month low. In China, the PBoC reiterated its promise of intensifying the “counter-cyclical adjustment” in order to bolster the economy and more financial support to real estate developers. In US business results, Amazon, Apple, Moderna and Kellogg’s beat expectations, while Warner Bros released worse earnings than expected.
What we expect for today
European stock markets would open with gains after the drops from the past 3 sessions. Currently, S&P futures are down up +0.35% (the S&P 500 ended flat vs. the European closing bell). Volatility in the US fell (VIX 15.92). Asian stock markets are mixed (China’s CSI 300 +1.0%, Japan’s Nikkei +0.17%).
Today in the euro zone we will learn July’s retail sales, in Germany factory orders and in the US non-farm payrolls and the unemployment rate. In US 2Q’23 Results, Dominion Energy, Cboe Global and Evergy, among others, will release their earnings.