EUR 100.00 For Business Accounts Only

IBERIAN DAILY 23 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: IAG, INDRA.

A week of sharp drops
European stock markets ended the week with losses of around -3.5% (-2.0% in the case of the IBEX) after the attacks on energy infrastructures in the war in Iran, which led to heavy increases in oil and gas prices. In the STOXX 600, all the sectors except Energy (underpinned by the sharp rise in Brent prices) ended in the red, led by Basic Materials and Media. In France, the far-right party lost support in the second round of the local elections and the left parties managed to maintain Paris and Marseille. In the UK, the PM K. Starmer will call an economic emergency meeting that will also include the BoE governor. The FMI cut Spain’s growth forecast two tenths to 2.1% in 2026 and to 1.7% in 2027. Meanwhile, Spain has approved a € 5 Bn tax cut to lower the electricity and fuel VAT, among other measures. On the geopolitical side, the US Govt. sent amphibious assault shops and troops to the Persian Gulf and could consider invading Kharg Island. Additionally, D. Trump threatened to attack Iran’s electricity facilities if the country does not totally unblock the Strait and the latter would attack the energy and water infrastructure of its Gulf neighbours in retaliation. The IEA warns that the war in Iran is generating the greatest energy threat ever and that restoring the gas and oil flows will take at least 6 months after the end of the conflict.
What we expect for today
European stock markets would open with drops >-1.0% again, dragged down by the geopolitical risk. Currently, S&P futures are down -0.63% (the S&P 500 ended -1% lower vs. the European closing bell). Asian markets are falling (China’s CSI 300 -3.4%, Japan’s Nikkei -3.3% and South Korea’s Kospi -6.5%).
Today in the euro zone we will learn March’s consumer confidence, in the US January’s construction spending and in Mexico January’s retail sales.