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IBERIAN DAILY 30 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: NEINOR HOMES, ROVI.

Stock markets continue to recover at the end of August
It was a new session of gains for European markets that continued to climb at the end of August, reducing the losses seen on the month. In the US, the technology sector fuelled indices again. In the Euro STOXX, Travel&Leisure and Household were the only sectors ending in negative territory vs. the heavier gains of Basic Resources and Insurance On the macro side, in the US, August’s consumer confidence fell much more than expected, returning to the levels seen early this year. July’s JOLTs job offers also fell more than expected to the lowest reading since March. Lastly, June’s home prices (FHFA) moderated more than expected. In Germany, according to Reuters, the fiscal support to bolster the ecological transition will total € 67.1 Bn in 2024. In Mexico, the final reading of the 2Q’23 was cut one tenth to 3.6% YoY and June’s IGAE economic activity climbed less than expected. In Japan, August’s consumer confidence fell after 8 months of consecutive rises.
What we expect for today
European stock markets would open with gains of +0.15% that could reach +0.4% to later ease throughout the session with Spain’s and Germany’s inflation data that could be disappointing. Currently, S&P futures are up +0.07% (the S&P 500 was +0.34% higher vs. the European closing bell). Volatility in the US dropped (VIX 1445). Asian stock markets are mixed (China’s CSI 300 -0.16%, Japan’s Nikkei +0.54%).
Today in the euro zone we will learn August’s economic confidence index, in Spain and Germany August’s inflation, and in the US the ADP employment survey and the second reading of the 2Q’23 GDP. As for auctions, Italy will issue € 10 Bn in bonds due 2033, 2034 and floating bonds due 2031.