IBERIAN DAILY 14 JANUARY (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: CAF.
MARKETS YESTERDAY AND TODAY
Awaiting political news from the US and Italy
The European stock markets rallied somewhat towards the end of the session, closing with slight gains (below 0.25% in all cases) in a highly stable session. Within the Euro STOXX, Household Goods and Utilities led gains, whereas, on the other hand, value stocks posted the biggest losses, with Travel & Leisure and Autos being the worst performers. On the macro side, in the Euro zone, November’s industrial output rose unexpectedly. In Italy, Conte’s government is threatened by the possible resignation of two ministers belonging to Renzi’s party. In the US, Congress voted in favour of impeaching D. Trump. Separately, December’s inflation data came in somewhat better than expected, with general inflation rising to 1.4% and core inflation remaining at 1.6%. In China, both imports and exports rose above expectations in December. In Japan, November’s machinery orders climbed unexpectedly.
What we expect for today
European stock markets would open with slight gains that could disappear over the course of the session. Currently, S&P futures are up +0.2% (the S&P 500 closed largely unchanged vs. its price at the closing bell in Europe). Volatility in the US dropped (VIX 22.21%). Asian markets are trading with mixed results (CSI 300 -1.1%, Japan +0.75%).
Today we will learn in Germany the 2020 GDP data, in the US the weekly jobless claims data and December’s import prices. In debt auctions: Italy (€ 6 Bn in bonds due 2024 and 2028).