EUR 100.00 For Business Accounts Only

IBERIAN DAILY 08 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: NATURGY.

MARKETS YESTERDAY AND TODAY

Profit-taking awaiting the ECB meeting
The European stock markets fell as the session progressed, closing with drops of around 0.5% amid growing concerns among investors over the economic slowdown and the expected reduction in monetary stimulus. Within the Euro STOXX, Basic Resources and Retail posted gains, whereas Chemicals and Utilities saw the biggest losses once again. On the macro side, in Germany, September’s ZEW economic sentiment index fell more than expected due to the poor performance of the expectations component, whereas the industrial output rose by 1.0% in July. In the Euro zone, the 2Q’21 GDP improved by 2 tenths vs. the preliminary data (2.2% YoY) thanks to the positive private consumption data (3.7% YoY). In Spain, public debt came in at 119.9% of GDP in 2020 due to the increase in public deficit (11% of GDP) and the contraction in the GDP as a result of the health crisis. In the US, from the Fed, J. Bullard continues to back the start of tapering this year due to the strength of the job market and the beginnings of a bubble in the US real estate market. In Japan, the final 2Q’21 GDP was raised +0.1%, whereas the trade balance for July was slightly weaker than expected.
What we expect for today
European stock markets would once again open with losses on fears of a less lax monetary policy, although with the Euro STOXX 50 support level remaining at 4,200 points. Currently, S&P futures are up +0.1% (the S&P 500 ended unchanged vs. vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 18.14). Asian markets are trading with mixed results (China’s CSI -0.7% and Japan’s Nikkei +0.6%).
Today the Beige Book on current economic conditions will be released in the US. In debt auctions: Germany (€ 3.5 Bn in bonds due 2031) and Ireland (€ 1.25 Bn in bonds due 2031 and 2041).