EUR 100.00 For Business Accounts Only

IBERIAN DAILY 07 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: MÁSMÓVIL.

MARKETS YESTERDAY AND TODAY

Results do not manage to keep the bullish momentum in European stock markets
Stock exchanges saw drops since the beginning of the session. In the Euro STOXX, Industrials was the only sector ending in positive territory, while Telecommunications, Food and Energy were the worst performers. On the macroeconomic level, in US, weekly jobless claims dropped to the lowest level since the beginning of the Covid-19 crisis. On another note, we stress the new tensions regarding the confrontation with China after D. Trump signed an order banning US business with the Chinese applications TikTok and WeChat. In the UK, the BoE kept its monetary policy unchanged and surprised the market by giving relatively positive economic indications while it also ruled out cutting rates to negative levels. In Germany, June’s Factory orders slowed down at a slower pace than expected. In Mexico, May’s fixed investments slowed down in line with expectations. In Japan, June’s leading indicator improved in line with expectations. In China, July’s exports speeded up, as opposed to expectations, however, imports grew slightly less than expected, underscoring some weakness in consumption. In US Results Pinacle, Viacom and Dun & Bradstreet, News Corp, Motorola, Edison and T-Mobile came in better than expected, Bristol Meyers in line, and Norwegian Cruse Line, Hilton and Revlon worse than expected.
What we expect for today
European stock markets would open with falls, dragged down by new tensions between the US and China. Currently, S&P futures are down -0.5% (the S&P 500 ended +0.8% higher vs. its price at the closing bell in Europe and before Trump’s decision on Chinese technology companies). Volatility in the US dropped again (VIX 22.65%). Asian markets are sliding (Japan -0.6% and Hong Kong -2% with falls in the technology sector).
Today in the US we will learn July’s non-farm employment, hourly gains, the unemployment rate and June’s whole sale inventories, in Germany June’s industrial output and June’s trade balance, in Spain June’s industrial output, and in Mexico July’s CPI. In US business results, Kodak and Sabre, among others, will release their earnings.