IBERIAN DAILY 19 MARCH (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ENDESA.Peace, tariffs and stimulus
It was a session of gains thanks to Germany’s fiscal reform that will boost defence and infrastructure spending, which will contribute to bolstering growth in the euro zone. In the STOXX 600, Banks led gains, followed by Energy whereas Real Estate and Media were the worst performers. On the macro side, the EU launched an investigation on the aluminium market, predicting new tariffs to US imports. From the ECB, O. Rehn was confident that inflation will converge to the 2% target. In Germany, the Parliament (Bundestag) approved, as expected (with a wide majority vs. 2/3 needed) the change of the debt constitutional rules. As for data, March’s ZEW index improved more than expected, pricing in the change in fiscal policy. In the US, February’s industrial output rose much more than expected. In the real estate sector, building permits fell slightly less than expected in February whereas housing starts rose more than expected. Lastly, February’s import prices climbed unexpectedly. In Japan, as expected, the BoJ kept interest rates unchanged at 0.5%, not making any comments on further rate rises in the next meetings. On another note, January’s machinery orders slowed down much more than expected. On the geopolitical front, talks between D. Trump and V. Putin ended with a ceasefire agreement in phases that would start by halting energy targets attacks by Russia although V. Putin demands Ukraine to cease its rearmament.
What we expect for today
Stock markets would open flat, with a slightly bearish slant. Currently, S&P futures are up +0.13% (the S&P 500 ended flat vs. the European closing bell). Asian markets are falling (China’s CSI 300 -0.1% and Japan’s Nikkei -0.05%).
Today the Fed Will hold its meeting. In the euro zone we will learn February’s final inflation and the 4Q’24 labour costs and in Brazil BCB meeting.
Endesa is engaged in the production, transmission, distribution, and supply of electricity, through hydroelectric, fossil fuel, and nuclear generation. Co. is also engaged in the mining of coal for use in its fossil-fuel electric plants; mining research; land restoration, and environmental monitoring and control.
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