EUR 100.00 For Business Accounts Only

IBERIAN DAILY 21 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, IBERDROLA, REPSOL, SIEMENS GAMESA.

Banks stand out once again
The European stock markets closed with gains after another session of strong widening on debt markets. Thus, within the Euro STOXX, Banks and Energy led gains, whereas Real Estate and Autos were the worst performers. On the macro side, in Germany, production prices contracted more significantly in November. In Spain, the BdE forecast a complicated 2023 due to high inflationary pressures and the low dynamism of global demand, although a recession would not occur, cutting its growth forecast to 1.3% in 2023 (-0.1pp vs. previously), 2.7% (-0.2pp) in 2024 and 2.1% in 2025. In the Euro zone, December’s consumer confidence recovered somewhat less than expected. In the US, building permits came in worse and November’s housing starts slowed less than expected. On the geopolitical front, Chinese companies continue to be blacklisted for chip exports (mainly technology and security), increasing supply distortions in the semiconductor production chain. In Russia, oil exports are reported to have halved after the implementation of the price cap in the EU. In Mexico, October’s retail sales rose above expectations. In China, Covid-19 restrictions continue to be eased, which could increase the number of deaths to 2 M people due to the lack of immunity, the low ratio of vaccinated elderly population, the weak healthcare system and possible mutations of the virus.
What we expect for today
European stock markets would open with gains, offsetting part of the drops over the past few days. Currently, S&P futures are up +0.4% (the S&P 500 ended unchanged vs. the European closing bell). Volatility in the US increased (VIX 23.65). Asian markets are mixed (China’s CSI 300 +0.1% and Japan’s Nikkei -0.7%).
Today we will learn in the US November’s second-hand home sales and December’s conference board consumer confidence.