IBERIAN DAILY 22 NOVEMBER (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: BBVA, SIEMENS GAMESA, TELECOMS SECTOR.
MARKETS YESTERDAY AND TODAY
The Ibex drops below 9,000 points on fears about inflation and Covid-19
It was a mixed week for European stock markets where renewed fears about a premature move by Central Banks (Fed vice chair R. Clarida, among others, left the door open to speeding up tapering, as a result of inflation and lockdowns due to Covid-19 new outbreaks, halted gains at the end of the week. In this regard, Austria will impose a general lockdown starting today and mandatory vaccination, whereas Germany confirmed it is facing a domestic emergency as a result of the increasing number of cases. Thus, the worse performance of the peripheral segment continued last week (the Ibex35 lost the 9,000-point reference, ending the week with corrections >-3%) vs. the core segment, as the Dax ended practically flat. Thus, in the Euro STOXX, Retail and Consumer Goods were the best performers while Travel&Leisure and Banks were the worst relative performers. In China, the Govt. will strengthen oversight of speculation on the yuan (at 6-year highs), whereas in its quarterly report, the PBoC left the door open to a more flexible monetary policy balancing risk control and stimulating growth.
What we expect for today
European markets would open with gains lower than +0.5% as the Covid-19 situation worsens in Europe amid social unrest in Austria, Belgium, the Netherlands and Germany due to restrictions. Currently, S&P futures are up +0.3% (the S&P 500 was down -0.23% vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 17.91). Asian markets are rising (China’s CSI 300 +0.5% and Japan’s Nikkei +0.10%).
Today in the US we will learn Chicago’s Fed national index and October’s existing home sales, and in the euro zone, October’s consumer confidence. In US Results, Agilent Technologies and Keysight, among others, will release their earnings. As for auctions, Germany will issue € 3 Bn in 12M T-bills and France € 5.4 Bn in 3, 5 & 12M T-bills.