EUR 100.00 For Business Accounts Only

IBERIAN DAILY 11 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CIE AUTOMOTIVE, LIBERBANK, SACYR.

MARKETS YESTERDAY AND TODAY

Profit taking ahead of Central Banks’ meetings
European bourses ended practically unchanged, as the opening losses eased after the release of European data. In the Euro STOXX Pharma and Real Estate were the best-performing sectors while Basic resources and Telecoms ended with the biggest losses. On the macroeconomic level, in the euro zone, December’s ZEW unexpectedly returned to positive territory while in Germany the recovery was greater than expected. In the UK, October’s industrial output improved slightly although the slowdown remains in YoY terms. On another note, the latest surveys show an advantage of 28 seats at the Parliament for B. Johnson. In the US, November’s 3Q’19 non-farm productivity slowed down -0.2%, slightly more than expected while unit labour costs slowed down more than expected (2.5% vs. 3.6% prev. and 3.4% expected). On the political front, N. Polosi outlined the support of the democrat group to the free trade agreement with Mexico and Canada replacing NAFTA (USMCA), hinting at its coming approval. As for the trade talks, tariffs will be apparently postponed (deadline 15/12), awaiting new meetings, which contributes to the progress of talks in the first phase.
What we expect for today
Stock markets would open flat awaiting confirmation that the implementation of tariffs will be delayed until the 15th of December. Currently, S&P futures are unchanged (the S&P 500 closed -0.14% lower vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 15.68%). Asian markets are mixed (Hong Kong +0.64% and Japan -0.08%).
Today in the US we will learn November’s inflation and the Fed’s interest rate meeting, in Brazil the Selic rate meeting. In debt auctions: Italy (€ 6.5 Bn in 12M t-bills) and Greece (€ 625 M in 12M t-bills).