Market sentiment, by Bárbara Morán

Today the market will be concentrating on the meeting of the USA Federal Reserve, where a reduction is expected of 25 basis points until situating the types in the range 1.75% - 2.00%. Special attention will hoard Powell's subsequent appearance and the publication of macroeconomic predictions as well as the forward guidance. The market has corrected its expectations enough from 4 reductions of here to a year that were expected three weeks ago, until 3 that are expected now. When it comes to the oil, seems that it has returned to the calm, with strong corrections in the price of the Brent and of the West Texas, after announcing Aramco that it has already recovered more than 50% of the lost production. In Italy, Renzi has resigned as a member of the Democratic Party and threat with form a new party which shoots the doubts on the stability of the new coalition government. While in Spain, the uncertainty for the announcement of new elections for on 10 November (already go 4 in recent years) can leave notice on the market of fixed income. In October ends the term to send the budgets of 2020 to the made EC that it will coincide during the election campaign.

Yesterday's market

US

The industrial production of August grew 0.6% (0.2% esp) thanks to the boost of the production of machinery and metals.

HOL

Holland put in operation is posed a national fund at the beginning of next year but without arriving at specify its amount.

GER

The index ZEW of the current situation disappointed worsening until - 19.9 ptos (- 15 esp ptos), the index of expectations fell - 22.5 ptos (- 38 ptos esp).

SP

In the last bills auction the 3 months offered a return of - 0,566% (- 0,528 pre) and the 9 months - 0,463% (- 0,546% pre). The rise of returns, will go emphasising in following auctions to short according to approach the coming into force of the tiering on 30 October.

Schedule of events

Foreign exchange market comment

Rafael Cortés

Yesterday an untroubled day on the market of currencies since everybody this one pending the meeting of the FED of today at 20:00h, the falls that saw in the dollar when dealing with the euro and the pound are justified for the intervention that it had do the FED on the market of repo to relieve the unusual one tensionamiento that is being seen in that market injecting 53bn of dollars.

Europe:

10.30am UK CPI (Aug.).
11.00am EZ CPI (Aug.).

The USA:

3.15pm Industrial production (Aug.).

Market summary