EUR 100.00 For Business Accounts Only

IBERIAN DAILY 17 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ALMIRALL, ELECTRICITY SECTOR, INDRA.

Oil prices set the pace
Stock markets kicked off the week with gains, underpinned by the fall in oil prices due to the potential extension of reserves freed in developed countries, Trump’s attempt to boost an international coalition to reopen the Strait of Hormuz and allow some ships to pass through. In the STOXX 600, all sectors with the exception of Autos, Media and Chemicals saw gains, led by Real Estate and Energy. On the macro side, in the US March’s Empire manufacturing index fell more than expected although companies continue to be optimistic account prospects. February’s industrial output rose more than expected in MoM terms and the residential sector confidence (NAHB) climbed more than expected in March. In Australia, the Central Bank is the first to raise the benchmark interest rate by 25bps to 4.1%. On the geopolitical front, D. Tump insisted that the war with Iran will end soon, adding that the country is seeking to negotiate. Meanwhile, although the main developed countries refuse to help guarantee the Strait of Hormuz, Tump outlined he will give a list of countries that will help. In any case, A. Dominguez, Secretary-General of the International Maritime Organization, warned that naval escorts cannot guarantee 100% safety for shipping in the Strait of Hormuz, while Iran attacked another oil tanker off Oman coast.
What we expect for today
European stock markets would open with losses of more than -0.5%, dragged down by another rise in Brent crude prices. Currently, S&P futures are down -0.5% (the S&P 500 ended -0.1% lower vs. the European closing bell). Asian markets are mixed (China’s CSI 300 -0.4%, Japan’s Nikkei -0.24% and South Korea’s Kospi +1.6%).
Today in Germany we will learn March’s ZEW index and in the US February’s pending home sales.