EUR 100.00 For Business Accounts Only

IBERIAN DAILY 13 FEBRUARY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, CAF, NATURGY, ROLLING STOCK SECTOR, TELEFÓNICA.

MARKETS YESTERDAY AND TODAY

Markets rally continues as coronavirus fear recedes
It was yet another session of gains on stock markets, especially in more cyclical indices with a greater exposure to Asia. Within the Euro STOXX we highlight the strong gains in Autos (which had been lagging behind) followed by Retail vs. profit-taking in Utilities and Real Estate. On the macro side, in the Euro zone, December’s industrial output contracted much more than expected. In Brazil, December’s retail sales grew less than expected (below November levels). In the US, the Secretary of the Treasury S. Mnuchin expects a delay in the implementation of Phase I of the trade agreement due to the coronavirus, although not on the US economy starting in 2020. From the Fed, J. Powell recognised the lack of leeway to cut rates and left the door open to purchases increasing in the case of a downturn. In China, the number of coronavirus cases in the Hubei region rose by 14,800 due to a change in methodology. In US business results, Nobel Energy came in better, Global Payments worse and Moody’s, CVS Health and Cysco Systems in line.
What we expect for today
We expect a bearish opening marked by the European results calendar. Currently, S&P futures are down -0.39% (the S&P 500 closed +0.12% higher vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 13.74%). The Asian markets that are open are falling (Japan -0.14% and Hong Kong -0.33%).
Today in the US we will learn January’s inflation, in Brazil December’s economic activity index and in Mexico the BoM will meet. In US business results, Pepsi, Kraft Heinz and AIG, among others, will release their earnings. Debt auctions: Italy (€ 5 Bn in bonds due 2023, 2027).