EUR 100.00 For Business Accounts Only

IBERIAN DAILY 05 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CELLNEX.

MARKETS YESTERDAY AND TODAY

Stock markets fall
Despite a more favourable scenario of falling bond yields and rising crude oil prices, the European stock markets ended the session with slight losses, except for the Ibex/MIB. Within the Euro STOXX, defensive sectors such as Food and Utilities were the best performers, whereas cyclical sectors such as Technology and Basic Resources saw the biggest drops. On the macro side, the OPEC+ meeting unexpectedly kept the group’s production levels unchanged until April (vs. +1.5 M expected), which was a victory for Saudi Arabia. In the US, J. Powell’s speech did not calm debt markets after he warned that he is only worried by a constant tightening of financial conditions. In China, the Govt. announced in the Chinese People’s Assembly a growth target above 6.0% (return to pre-pandemic level) and the creation of 11 million urban jobs, but with the public deficit returning to -3.2%. In US business results, Krogen beat expectations.
What we expect for today
European indices would open with losses of up to -1.0%, where value’s room for improvement from an uptick in debt yields may have run out. Currently, S&P futures are down -0.1% (the S&P 500 was down -1.68% vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 28.57). Asian markets are mixed (CSI 300 +0.1%, Japan -0.2%).
Today we will learn in Germany January’s factory orders data, in Brazil January’s industrial output data and in the US February’s employment data and January’s trade balance. In ratings, Moody’s will revise Spain’s (currently at Baa1, stable).