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IBERIAN DAILY 24 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ARCELORMITTAL, ECOENER, ENDESA, OHLA.

Moderate drops in a session without volume and with weaker macro data
Despite the US rally seen last Friday after the European closing bell, in the absence of additional catalysts, the worse macroeconomic data released yesterday in the US dragged down European stock markets in a session with low volume. Thus, in the STOXX 600 Pharma stood out thanks to the rally of Novo Nordisk following last Friday’s strong corrections whereas Leisure and Autos were the worst performers, with Volkswagen being hit by the disappointing agreement reached with the German unions on downsizing. On the macro side, in the UK, the 3Q’24 GDP was cut one tenth due to the lower public spending. In the US, December’s Conference Board consumer confidence index deteriorated, as opposed to expectations, November’s durable goods orders slowed down more than expected and building permits and new home sales for November also came in worse than expected. In Mexico, the IGAE activity index improved in MoM terms but came in worse in YoY terms.
What we expect for today
Stock markets would open with a slight bullish slant although most likely lacking direction, with some volatility and low volume in a short session (European markets will close at 14:00 CET) and without references or catalysts. Currently, S&P futures are flat (the S&P 500 ended +0.7% higher, fuelled once again by the technology sector vs. the European closing bell). Asian markets, where no holidays will be held, are climbing (China’s CSI 300 and Japan’s Nikkei >+1%).
Today no relevant macroeconomic data will be released.


COMPANY NEWS

ANTI-TOB PROTECTION EXTENDED FOR TWO YEARS.
Yesterday the Govt. agreed to extend for two years the anti-TOB Royal Decree through December’26. After the changes implemented in 2023, note that this protection applies for direct foreign investments made by residents from other EU countries and from the European Free Trade Association. The limit is 10%.