EUR 100.00 For Business Accounts Only

IBERIAN DAILY 08 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: NATURGY, SANTANDER.

MARKETS YESTERDAY AND TODAY

Stock markets continue to recover ground following the Omicron scare
Stock exchanges continued to recover the ground lost last week, driven by the different statements made on Omicron, less harmful than initially feared, with some vaccines showing efficacy in previous tests, and its probable lower impact on global growth. Thus, in the Euro STOXX, on the positive side, Technology stood out, also recovering from the corrections seen over the last few days given the new Chinese regulatory offensive, followed by other growth sectors also linked to China, such as Basic Resources, Consumer Goods or Retail in view of the latest battery of good macroeconomic data released in the country and the flattening of the US cuve. Financials (Banks and Insurance), Real Estate, Utilities and Food saw the lowest gains. On the macroeconomic level, in the euro zone, the 3Q’21 GDP grew slightly more than expected in YoY terms whereas the expectations component of the ZEW investment confidence index widely beat expectations in Germany in December. In the US, labour costs grew more than expected and non-farm productivity fell below expectations, which continued to fuel rate rise expectations and the US 2Y yield. On the geopolitical front, tensions increase after Biden threatened Russia with significant economic sanctions if the country invades Ukraine. In Mexico, September’s fixed gross investment grew less than expected. In China, the monetary easing has apparently eased concerns about a new default by Evergrande and Kaisa. In Japan, the 3Q’21 GDP slowed down more than expected.
What we expect for today
European stock markets would open flat. Currently, S&P futures are up +0.3% (the S&P 500 ended unchanged vs. its level at the European closing bell). Volatility in the US continued to drop (VIX 21.9). Asian markets are rising (China’s CSI 300 +1.3% and Japan’s Nikkei +1.4%).
Today in Brazil we will learn October’s retail sales and the Central Bank meeting. In debt auctions: Greece will issue 3M T-bills.