EUR 100.00 For Business Accounts Only

IBERIAN DAILY 31 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: AENA, CAF, GRIFOLS, NEINOR HOMES.

Stock markets amid doubts of an excessive correction and the deterioration of the Gulf prospects
Stock markets fluctuated within a narrow range yesterday at around last week’s close. The deterioration of prospects regarding a rapid solution to the conflict with the arrival of US troops to the region and the entry of Yemen’s Houthi rebels had a negative impact. On another note, several investment banks outlined that the correction is starting to be excessive, which contrasts with the good earnings prospects and recalled that historically the impact from conflicts in the region on stock markets has not been long-lasting. The tightening in sovereign yields, largely explained by a technical rally of bonds, also alleviated stock exchanges. Meanwhile, the conflict continues and Iran launched a missile against an oil tanker from Kuwait at the Dubai port of and, according to the press, D. Trump would be now studying the possibility of withdrawing even though the Strait of Hormuz remains closed as it is not a US problem but from other countries. Thus, in the STOXX 600, Utilities, Basic Resources and Energy were the best performers whereas Leisure and Technology were the worst performers. On the macro side, in the euro zone March’s final consumer confidence confirmed the preliminary data. In China, March’s manufacturing and services beat expectations and returned to expansion levels. In Japan, February’s unemployment rate, industrial output and retail sales and March’s Tokyo inflation came in below expectations.
What we expect for today
European stock markets would open with gains of +0.5%. Currently, S&P futures are up +0.7% (the S&P 500 ended -0.8% lower vs. the European closing bell). Asian markets are sliding again (China’s CSI 300 -0.2%, Japan’s Nikkei -1% and South Korea’s Kospi -3.3%).
Today in the euro zone we will learn March’s inflation, in Germany February’s production prices, retail sales and unemployment, in the UK the 4Q’25 GDP, and in the US January’s home prices, February’s job vacancies and March’s Chicago PMI and consumer confidence.