EUR 100.00 For Business Accounts Only

IBERIAN DAILY 06 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ALMIRALL, CAF.


The higher spending underpins stock markets and drags down fixed income
European stock markets rallied, fuelled by the stimulus plans in Germany and the possible peace in Ukraine. Thus, in the STOXX 600, construction (infrastructure plans in Germany and reconstruction of Ukraine) and Banks (thanks to higher rates) were the best-performing sectors whereas bond proxies such as Real Estate, Utilities and defensive industries such as Food and Household posted the biggest drops. On the macro side, in the euro zone, February’s final services PMI was cut one tenth vs. the preliminary data, with Germany’s worse reading standing out (51.1 vs. 52.2 prev.). In the US, February’s ADP private employment moderated much more than expected and February’s non-manufacturing ISM rose more than expected (with progress in new orders and employment, as well as the price component. From the Fed, the Beige book suggested lacklustre growth and significant concerns about tariffs. Meanwhile, the announcement made by the Commerce Secretary H. Lutnick last Tuesday about postponing the implementation of tariffs to Mexico’s and Canada’s cars until April has been confirmed. In 4Q’24 business results Marvel, MongoDB, Zscaler and Campbell’s beat expectations.
What we expect for today
European stock markets would open with gains of around +1.0% awaiting Lagarde’s message following the ECB meeting. Currently, S&P futures are down -0.1% (the S&P 500 ended +1.20% higher vs. the European closing bell). Asian markets are climbing (China’s CSI 300 +1.57% and Japan’s Nikkei +0.76%).
Today in the euro zone the ECB will meet, in Brazil we will learn January’s industrial output and in the US weekly jobless claims and 4Q’24 non-farm productivity. In US business results Broadcom, Costco and Merck, among others, will release their earnings.