IBERIAN DAILY 21 DECEMBER (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACERINOX, ALMIRALL, ELECTRICITY SECTOR, MERLIN PROPERTIES, TOURISM SECTOR.MARKETS YESTERDAY AND TODAY
Lockdowns drag on stock markets
Lower trading volumes ahead of the Christmas holidays and fears on growing infections led to profit-taking on the stock markets on Monday. In this regard, the news that a third dose of Moderna’s vaccine also increases antibody levels against the Omicron variant (as much as 37 times) backed drops. Within the Euro STOXX all sectors ended with losses, led by Chemicals and Autos, whereas Banks and Consumer Goods saw the smallest losses. On the macro side, in the United Kingdom, although Deputy Prime Minister D. Raab did not rule out a Christmas lockdown, it was leaked to the press that the new measures would be put off until Monday 27 Dec. In Germany, the new chancellor O. Scholz expects to toughen restrictions and speed up the pace of vaccination after Christmas. Separately, J. Nagel (close to the social democrats, with a hawkish tone and against extending stimuli) has been chosen by Scholz to replace N. Weidmann at the head of the Bundesbank. In the US, Biden would be negotiating adjustments to his US$ 2 Tn stimulus package with the Senators that voted against it in a last-ditch effort to get it passed. In Turkey, Erdogan announced extraordinary measures to halt demand for USD and strengthen the lira: the Govt. will offset losses incurred by deposit holders if depreciation exceeds the interest rate, will help exporters mitigate FX risks, taxes on investments in lira will be reduced from 10% to 0% and Govt. contributions to the pension system will rise to 30% (from the previous 25%).
What we expect for today
Following yesterday’s correction, European stock markets would open with gains of +1%, trusting in a scenario of growing, but manageable Covid-19 cases. Currently, S&P futures are up +0.8% (the S&P 500 ended +0.45% higher yesterday vs. its level at the European closing bell). Volatility in the US rose (VIX 22.87). Asian markets are rising (China’s CSI 300 +0.7% and Japan’s Nikkei +2%).
Today we will learn in the UK November’s consumer confidence data.
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.
Almirall is engaged in the acquisition, manufacture, storage, sale and mediation in the sale of pharmaceutical specialties and products and all manner of raw materials used to prepare pharmaceutical specialties and products. Also, Co. acquires, manufactures, storages, sales and mediates in the sale of cosmetics, chemical, biotechnological and diagnostic products for human, veterinary, agrochemical and food-industry use, as well as all manner of utensils, complements and accessories for the chemical, pharmaceutical and clinical industries. In addition, Co. is engaged in the acquisition, sale, lease, subdivision and development of land lots, land and properties of all kinds.
Merlin Properties SOCIMI SA is a Spain-based company engaged in the operation of a real estate investment trust (REIT). The Company focuses on the acquisition, management and rental of commercial properties located in the Iberian Peninsula, primarily in Spain. The Company's activities are divided into the following segments: Office buildings, operating a portfolio of office space; High-street retail, engaged in leasing retail stores; Shopping centers, engaged in managing department stores; Logistics, operating logistics warehouses and distribution centers, and Others. The Company's other activities include property management services rendered to third parties.
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