EUR 100.00 For Business Accounts Only

IBERIAN DAILY 23 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: OHLA.

Stock market lose ground although the Ibex managed to end with gains
European stock markets saw a decreasing performance, partially dragged down by the hike in interest rates after services PMI continued to suggest moderate growth on both sides of the Atlantic. In the STOXX 600, Retail and Household led gains, whereas energy and Basic Resources posted the biggest drops. On the macro side, both in the euro zone and the US August’s manufacturing PMI dropped slightly more than expected but with the services PMI climbing unexpectedly, which fuelled the composite PMI above expectations. Additionally, in the US existing home sales rose more than expected in July. In Mexico, the 2Q’24 GDP grew slightly less than expected. In Japan, in line with expectations, July’s core inflation climbed to 2.7% YoY whereas the general data remained at 2.8%. The BoJ governor warned that the monetary policy will remain under gradual tightening if inflation remains, as expected, around the target. In US 2Q’24 business results, Ross and Intuit beat expectations.
What we expect for today
Stock markets would open flat, awaiting J. Powell’s speech. Currently, S&P futures are flat (the S&P 500 ended down -0.2% vs. the European closing bell). Volatility on the S&P 500 (VIX) rose to 17.5. Asian markets are climbing (CSI +0.3% and Nikkei +0.4%).
Today we will only learn J. Powell’s speech in Jackson Hole and existing home sales.