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IBERIAN DAILY 08 SEPTEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CHANGES IBEX, REPSOL.

Market doubts
Without a clear direction, European stock markets lost height and ended around -0.5% lower in the case of the Euro STOXX%0 (Ibex flat), whereas the macroeconomic data continued to provide negative surprises in the euro zone and positive surprises in the US. Thus, in the Euro STOXX, defensive sectors such Utilities and Telecoms led gains, whereas Technology and Basic Resources saw the biggest drops. On the macro side, in the euro zone the 2Q’23 GDP was cut to 0.5% YoY from 0.6% previously, mainly hit by exports. In Germany, industrial output fell slightly more than expected, coming in around 7% below pre-Covid levels. From the ECB, F.Villeroy stressed the advantages of keeping high rates for a longer period of time and from the BoE Bailey stated that the end of the rate rise cycle is near. In the US, jobless weekly claims fell unexpectedly to the lowest level since February, suggesting relatively pressure in the job market. Meanwhile, L. Logan from the Fed (Dallas Fed) was in favour of a small pause without closing the door to further rises, while J. Williams considers that rates are at appropriate levels. In Mexico, August’s inflation dropped, as expected, to 4.60% although the core data fell unexpectedly to lows from the past 20 months, In Japan, the final 2Q’23 GDP was cut more than expected due to lower investments.
What we expect for today
European stock markets would open with gains of around +0.3% in a session of few macro releases and with the weakness of the yuan (offshore at lows since 2010) as a backdrop. Currently, S&P futures are up +0.10% (the S&P 500 ended unchanged vs. the European closing bell).). Volatility in the US rose (VIX 14.40). Asian stock markets are sliding (China’s CSI 300 -1.42%, Japan’s Nikkei -0.75%).
Today in Spain we will learn July’s industrial output and in Germany August’s final inflation.


COMPANY NEWS

CHANGES IBEX 35. Technical Advisory Committee makes no changes in components or weightings.
As expected, the IBEX 35 Technical Advisory Committee made no changes in either components or in weightings in its second follow-up meeting of the year (the other is in March).