EUR 100.00 For Business Accounts Only

IBERIAN DAILY 03 OCTOBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: SACYR.

Gains resumed in Europe
The Euro STOXX 50 exceeded the resistance level of 5,566 points, remaining confident that the US shutdown will not have a significant impact. In the STOXX 600, cyclical sectors such as Technology and Autos were the best performers whereas Banks and Utilities saw the biggest drops. On the macro side, in Spain, September’s number of unemployed fell to 2007 lows whereas the number of employed workers rose to 21.7 M. In Italy, the government foresees a -3.0% deficit in 2025 (vs. -3.3% previously). In the euro zone, August’s unemployment rate rose one tenth to 6.3%. In the US, the data were not released due to the shutdown (August’s weekly jobless claims and industrial orders). On the trade front, the US Secretary of the Treasury, S. Bessent ,pledged to support US farmers in view of China’s refusal to buy US soybeans. In Japan, August’s unemployment rate rose more than expected. On the geopolitical front, Munich airport had to cease activities yesterday afternoon after drones were seen close to its airspace.
What we expect for today
European stock markets would open with gains of +0.3%, with the technology sector performing well. Currently, S&P futures are up +0.2% (yesterday the S&P 500 ended +0.3% higher vs. the European closing bell). Asian markets are rising (China’s CSI 300 +0.5% and Japan’s Nikkei +1.7%), where we highlight the South Korean index, which is up +3.0%.
Today in the euro zone we will learn September’s final services PMI and August’s industrial price index and in the US September’s non-farm job creation, unemployment rate and wage gains (postponed due to the shutdown).