EUR 100.00 For Business Accounts Only

IBERIAN DAILY 03 FEBRUARY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CELLNEX, FERROVIAL, NH HOTELS, SACYR, SIEMENS GAMESA

MARKETS YESTERDAY AND TODAY

Doubts continue but China injects liquidity
Despite the positive opening in Europe, the main stock exchanges turned around in mid session and ended with losses. In the Euro STOXX, Media was the only sector not seeing losses, followed by Food, while Basic Resources and Technology posted the biggest drops. On the macroeconomic level, in Spain, the 4Q’19 GDP climbed slightly more than expected to 1.8% while in Italy growth slowed down in its sharpest drop since 2013 to 0.0%. In the euro zone, January’s preliminary inflation was in line, improving the previous data by one tenth to 1.4%. In the US, December’s personal income and outlays grew less than expected and the University of Michigan Consumer Confidence slowed down unexpectedly. China’s Central Bank made a US$ 21 Bn injection to the system to avoid liquidity tensions on the market with the opening of the stock market (CSI 300 Index plummeted -9% after one week closed). Ona another note, Caixin manufacturing PMI came in slightly better than expected as opposed to January’s business profits. In US Results Aon and Caterpillar came in above expectations while Exxon Mobil below estimates.
What we expect for today
We expect a slightly positive market performance following the injection of liquidity made by Chinese authorities.
Currently, S&P futures are up +0.68% (the S&P 500 closed -0.27% lower vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 18.84%). Asian markets are mixed (Japan -1.01% and Hong Kong +0.27%).
Today in Germany we will learn the manufacturing PMI and in the US the manufacturing ISM. Separately, the democratic party election primaries start today in Iowa. In US business results, Alphabet and Sysco, among others, will release its earnings. In debt auctions: Netherlands (€ 2 Bn in 6M T-bills) and France (€ 4 Bn in 3M, 6M and 12M T-bills).