EUR 100.00 For Business Accounts Only

IBERIAN DAILY 30 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: BANKINTER, BBVA.

The entry of Houthi rebels aggravates prospects in the Middle East conflict
Stock markets saw volatility last week, with all eyes the Middle East conflict after D. Trump extended the deadline again until the 6th of April to attack Iran’s energy infrastructures. The entry of Yemen’s Houthi rebels, backed by Iran, into the conflict and their possible actions in the Red Sea aggravate the prospects of crude oil and the conflict resolution. In the STOXX 600, Chemicals and Autos were the best performers whereas Real Estate and Media were the worst performers. On the macro side, in the UK February’s retail sales fell less than expected. In Spain March’s preliminary inflation rose vs. February from 2.3% to 3.3% whereas the core data (ex energy and food) remained stable at 2.7%. In the US the University of Michigan final consumer confidence fell to 53.3, below the preliminary data and hitting December’s lows, the expectations component fell sharply and 1-year inflation forecasts climbed to 3.8%. In Brazil, February’s unemployment rate rose more than expected and in Mexico it moderated less than expected.
What we expect for today
European stock markets would open with drops of around -0.70%, with Energy and defensive stocks faring better than cyclicals. Currently, S&P futures are flat (the S&P 500 ended -0.8% lower vs. the European closing bell). Asian markets are sliding (China’s CSI 300 -0.36%, Japan’s Nikkei -3.2% and South Korea’s Kospi -3.1%).
Today in Spain we will learn February’s retail sales, in the euro zone March’s economic confidence and consumer confidence indicators and in Germany March’s preliminary inflation.