IBERIAN DAILY 17 DECEMBER (ANÃLISIS BANCO SABADELL)
NEWS SUMMARY: ACERINOX, BBVA, ENAGÃS, IAGMARKETS YESTERDAY AND TODAY
Sharp rises in Europe
European markets continued to rise for the second straight session thanks to the optimism on the trade conflict and the solid macro data from China. The Euro Stoxx hit a high since Apr’15 with all sectors posting gains, led by Retail and Banks vs. the worse performance by Autos and Insurance. On the macro side, in Spain the BoS estimates that the government will not meet its fiscal targets and expects the deficit to remain at -2.5% over GDP in 2019. Furthermore, the BoS states that the updating of pensions to inflation will prevent the country from meeting 2020 targets. In the euro zone, the preliminary manufacturing PMI once again worsened in December unexpectedly, whereas the service PMI improved slightly. On the whole, the data suggests growth in 4Q’19 of 0.6% YoY vs. 1.0% expected. In the UK, Boris Johnson promised to speed up the country’s exit from the EU and will present the Brexit bill on 20/12 that would include a clause ensuring that the transition period will end in December 2020 or, alternatively, a disorderly exit. In the US, the Empire manufacturing index recovered slightly less than expected in December, and the NAHB index for the same month improved more than expected.
What we expect for today
Stock markets would see a flat opening and, possibly, some profit-taking following the earnings from the previous sessions. Currently, S&P futures are trading unchanged (the S&P 500 closed unchanged vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 12.14%). Asian markets are rising (Japan +0.47% and Hong Kong +1.08%).
Today in the UK we will learn October’s unemployment rate and in the US industrial output, installed capacity utilisation, housing starts and November’s building permits.
Acerinox is the parent company of a group engaged in the manufacture and sale of flat and long stainless steel products, and stainless steel wires. Co.'s major products include slabs, billets, black coils, plates, hot-rolled coils, hot-rolled sheets, flat bars, hot-rolled re-bars, hot-rolled black bars, engraved sheets, cold-rolled coils, cold-rolled sheets and circles. Co. also provides long stainless steel products, such as wire rods, angles, hot rolled flat bars, hot rolled re-bars, reinforced bars in coils, cold rolled re-bars, hot rolled black bars, cold drawn bars, and smooth turned bars. In addition, Co. offers wires, welding wire bars, and bars for electrodes.
Banco Bilbao Vizcaya Argentaria is an international financial group, engaged primarily on providing banking services and consumer finance to private individuals and businesses in Spain and Portugal; providing real estate activity in Spain; providing services to international companies and investment banking, capital markets and treasury management services to clients; and providing the banking, insurance and pension businesses in Mexico and the U.S., as well as in South America.
Enagas is a gas transportation company based in Spain. Co. is engaged in the technical distribution and storage of gas through pipelines as well as the provision of regasification services. Co. and subsidiaries are engaged in the ownership, administration, storage, pipeline transportation, distribution flow, and sale of natural gas. As a transport company, Co. also provides gas and manages the gas infrastructures.
International Airlines Group is an international scheduled airline and global premium airlines. Co.'s principal place of business is London with significant presence at Heathrow, Gatwick and London City airports.
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