EUR 100.00 For Business Accounts Only

IBERIAN DAILY 29 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CAIXABANK, GRUPO C. OCCIDENTE.

A transition session with low volume
Yesterday’s session was marked by the low traded volume and by the slight drops seen in the main European indices amid fears about China’s reopening in terms of inflation. Thus, the Euro STOXX posted slight drops, with the peripheral sector outperforming the core segment. The best-performing sectors were Real Estate and Food, whereas Technology and Travel&Leisure were the worst performers. On the macro side, in Europe, European natural gas prices fell again to levels prior to the Ukrainian war despite the fact that they remain 30% above the levels seen over the same period last year and 10% above the average from the past 5 years. In Spain, the administration eliminated the 4% VAT on staple foods for a 6-month period, lowering the VAT on oil and pasta to 5%. In the US, pending home sales came in worse than expected, whereas December’s Richmond manufacturing index beat expectations, hitting positive territory.
What we expect for today
European stock markets would open with a negative bias after the US corrections seen yesterday and the poor session of Asia where Covid cases in China continue to increase exponentially. Currently, S&P futures are flat (the S&P 500 ended with drops vs. the European closing bell). Volatility in the US fell (VIX 20.14). Asian markets are sliding (China’s CSI 300 -0.25% and Japan’s Nikkei -0.95%).
Today in the US we will learn weekly jobless claims, in the euro zone November’s M3 and in Spain November’s retail sales.