EUR 100.00 For Business Accounts Only

IBERIAN DAILY 10 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: OHL, TELEFÓNICA.

MARKETS YESTERDAY AND TODAY

Stock markets hesitate on fears of disagreement over fiscal stimuli in the US
Stock markets posted slight gains on Friday driven by Germany and despite the bearish opening of the US stock market given the US Congress’ inability to reach an agreement on a new stimulus package, as a result of which D. Trump signed a number of executive orders during the weekend to ensure the continuity of subsidies. Within the Euro STOXX, the Industrial and Telecom sectors led gains, driven by D. Telekom after T-Mobile released its results, whereas Basic Resources and Energy saw the biggest drops. On the macro side, in the US, non-farm employment climbed above expectations in July (1,763k vs. 1,480k expected), and the unemployment rate fell somewhat more than expected (to 10.9%), whereas average hourly earnings decreased less than expected (+4.8%). In the Euro zone, the EC is unlikely to impose deficit limits before 2022In Germany, the pace of industrial output decline moderated in June, as expected, and so did June’s exports (imports recovered somewhat less than expected). In Spain, the pace of industrial output decline moderated more than expected. In Mexico, July’s CPI came in as expected. Early this morning in China, July’s inflation climbed above expectations. In US business results, no relevant companies released their earnings on Friday.
What we expect for today
Stock markets would open with slight gains, with all eyes on the US-China negotiations this week.
Currently, S&P futures are up +0.2% (the S&P 500 ended +0.3% higher vs. its price at the closing bell in Europe). Volatility in the US dropped slightly again (VIX 22.21%). In Asia, China is falling somewhat (Hong Kong -0.1%), whereas Japan is closed for a holiday.
Today we will learn in the Euro zone August’s Sentix investor confidence index (est. -16). In US business results, Marriot and IFF, among others, will release their earnings. In debt auctions, Germany and France will issue 3M, 6M, 9M and 12M T-bills.