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IBERIAN DAILY 31 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CELLNEX, OHLA, UNICAJA.

S&P regains the 4,000-point level
The European stock markets rose sharply, fuelled by the inflation slowdown in March and the good US opening session. Within the Euro STOXX, the best-performing sectors were Real Estate and Retail, followed closely by Banks, whereas Food and Financial Services saw the bigger corrections. In the Euro zone, March’s economic climate index fell unexpectedly. In Germany, inflation slowed less than expected in March to 7.4%, whereas in Spain it slowed more than expected to 3.3% YoY, although core inflation stood at 7.4%. In the US, weekly jobless claims increased somewhat less than expected, whereas the 4Q’22 GDP was lowered slightly to 2.6% QoQ annualised due to the lower private consumption levels. In Mexico, the Central Bank raised the benchmark interest rate by +25bps as expected to 11.25%. In Japan, February’s unemployment rate climbed unexpected whereas February’s industrial output and retail sales recovered more than expected, as well as Tokyo’s inflation in March. On another note, the government announced exports restrictions to China for up to 23 types of equipment for chip manufacturing. In China, March’s manufacturing and services PMI rose more than expected to 51.9 and 58.2, respectively.
What we expect for today
European stock markets would open with slight gains, awaiting the macroeconomic data to be released at both sides of the Atlantic. Currently, S&P futures are up +0.16% (the S&P 500 ended virtually unchanged vs. the European closing bell). Volatility in the US fell (VIX 19.02). Asian markets are rising (China’s CSI 300 +0.3% and Japan’s Nikkei +0.9).
Today in the euro zone we will the inflation data, in the United Kingdom, the final 4Q’22 GDP, in Germany March’s unemployment data, in Mexico February’s unemployment rate, and in the US, February’s personal outlays and the University of Michigan confidence index for March.