EUR 100.00 For Business Accounts Only

IBERIAN DAILY 27 NOVEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: INDRA, INMOBILIARIA COLONIAL, SANTANDER.

Fears of another trade war
Fears of another trade war once again led to a distancing of European indices from the S&P500, which again was the best relative performer. In the STOXX 600, most sectors (16 of 20) fell, with cyclicals like Basic Materials and Autos dropping the most, whereas only Consumer Goods and Media showed consistent gains. On the macro side, in the US the Conference Board consumer confidence for November improved slightly less than expected, while new home sales fell more than expected in October and housing prices rose more than expected. The Richmond manufacturing index for November once again worsened unexpectedly, while November’s Texas Fed services index improved more than expected. From the Fed, the monetary minutes showed a wide consensus to maintain the rate cut pattern but gradually. In France, the 2025 budget might not be approved due to M. Le Pen party that also threatens with a censure motion to the current Finance Ministry. On the geopolitical front, the Mexican president, C. Sheinbaum, warned of tariffs on imports from Mexico, Canada and China and stated a proportional response will be made. Separately, the G7 again expressed its support for Ukraine, coinciding with Russia’s fastest advance in the eastern part of the country. On another note, a preliminary ceasefire was reached in Lebanon between Israel and Hezbollah.
What we expect for today
Stock markets would open with a slight bearish slant, with the French financial sector hit by the fiscal and political doubts in the country. Currently, S&P futures are down -0.04% (the S&P 500 was +0.2% higher vs. the European closing bell). Asian markets are mixed (China’s CSI 300 +1.2%, Japan’s Nikkei -0.8%).
Today in Spain we will learn October’s retail sales, in the US weekly jobless claims, the final 3Q’24 GDP reading, October’s durable goods orders, October’s personal income and outlays and October’s core private consumption deflator.