EUR 100.00 For Business Accounts Only

IBERIAN DAILY 08 APRIL (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACCIONA, ELECTRICITY SECTOR, NATURGY.

Geopolitical risk and US macro condition risk assets
The end of the week was conditioned by a movement of risk aversion due to the rising tensions between Israel and Iran although at the end of the week, the EuroSTOXX 50 managed to moderate drops to slightly more than -1%, with the IBEX slid -1.5%. Last week drops were moderate although the DAX/CAC slid -0.6%. Within the STOXX 600 sectors, Energy and Basic Materials led the weekly gains, with Real Estate and Consumer Goods ending with the biggest losses. On the macro side, in Germany industrial orders were once again weak, coming in below expectations, whereas in the euro zone February’s retail sales fell slightly less than expected. In the US, the employment data came in far above expectations (exceeding 300,000 payrolls, led by medical services, leisure and tourism), with the unemployment rate falling and lacking salary pressures. From the Fed, Logan was cautious about the disinflation process and Bowman warned that the risk of being forced to raise rates persists if inflation does not moderate.
What we expect for today
European stock markets would open flat, with a slight bullish slant and with the energy sector hit by the falling Brent crude prices. Currently, S&P futures are down -0.13% (the S&P 500 ended down -0.15% vs. the European closing bell). Asian stock markets are mixed (China’s CSI 300 -0.41%, Japan’s Nikkei +0.75%).
Today in the euro zone we will learn April’s Sentix index and in Germany February’s industrial output.