EUR 100.00 For Business Accounts Only

IBERIAN DAILY 04 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CELLNEX, ENAGÁS, MELIÁ.


The Ibex near 13,400 points
European stock markets traded near the highs hit in the last few days amid many concerns (tariffs to Canada and Mexico will come into force next Tuesday and the situation in Ukraine is uncertain given the commitment of the Trump administration). Thus, in the STOXX 600, Industrials (fuelled by defence companies) and Basic Resources were the best performers vs. Real Estate and Utilities that were the only sectors ending in negative territory. On the macro side, in Germany Chancellor F. Merz of the CDU/CSU party would be seeking an agreement with SPD to raise the defence spending (around € 400 Bn could be endowed for defence and infrastructure). In the euro zone, February’s preliminary inflation moderated slightly less than expected (2.4%), as well as the core data (2.6%), whereas February’s final manufacturing PMI was raised slightly thanks to Germany and France, whereas in Spain it was once again below 50. In the US, February’s non-manufacturing ISM fell more than expected, with the strong increase in the price sub-index standing out (at highs from Aug’22). In Japan, January’s unemployment rate rose more than expected, while the CAPEX survey suggested an unexpected contraction in 4Q’24. As for the trade war, the US tariffs to Mexico/Canada and China will come into force, where the latter announced tariffs on US food goods of between 15% (chicken, corn, wheat, cotton) and 10% (sorghum, soy, meat, fish and vegetables). In geopolitics, the US announced an expected halt to military and financial aid to Ukraine.
What we expect for today
European stock markets would open with drops near -1.0% due to tariffs, with the energy sector under pressure due the OPEC’s decision of resuming the production increase in April. S&P futures are up +0.34% (the S&P 500 ended -1.53% lower vs. the European closing bell). Asian markets are sliding (China’s CSI 300 -0.2% and Japan’s Nikkei -1.25%).
Today in Spain we will learn February’s job creation and in the euro zone January’s unemployment rate. In US business results Best Buy and Autozone, among others, will release their earnings.