EUR 100.00 For Business Accounts Only

IBERIAN DAILY 15 OCTOBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: TALGO.

The Ibex near 12,000 points
It was a session of gains that saw an increasing performance in Europe without practically any macroeconomic references. With the US closed for Columbus Day, the Ibex traded above 11,800 points. Thus, in the STOXX 600, Technology and Utilities were the best-performing sectors vs. the drops of Consumer Goods and Travel&Leisure. On the macro side, in the UK, the government is studying a tax rise in the gambling sector that will mean £3 Bn to tackle the deficit. In the US, C. Waller from the Fed was more cautious about rate cuts whereas N. Kashkari sees moderate rate cuts are appropriate over the coming quarters. On another note, the administration would be studying to curb NVIDIA’s advanced chip exports and also from other US companies to specific countries mainly the Middle East. In China, September’s imports and exports grew less than expected. On another note, M2 and total financing rose more than expected in September. On the geopolitical front, Israel announced that the retaliations against Iran will result in attacks to military facilities and not to nuclear or oil sites. OPEC cut its global oil demand forecast for the third consecutive time for 2024 and 2025 due mainly to China.
What we expect for today
Stock markets would open with gains of as much as +0.5% although with drops of -1.0% in the oil sector due to the sharp drop in Brent crude. Currently, S&P futures are up +0.1% (the S&P 500 ended +0.1% higher vs. the European closing bell). Asian markets are mixed (China’s CSI 300 -1.8%, Japan’s Nikkei +1.3%).
Today in the euro zone we will learn August’s industrial output, in Germany October’s ZEW index, in Spain September’s final and core inflation and in the UK ILO unemployment rate and number of unemployed. In US business results, today Bank of America, Goldman Sachs, Citigroup and State Street will release their earnings.