EUR 100.00 For Business Accounts Only

IBERIAN DAILY 18 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: EBRO FOODS, ENCE, PUIG BRANDS.

The Ibex dragged down by banks
European stock markets ended with sight corrections although the CAC closed in positive territory, with the Ibex being the worst performer. Thus, in the STOXX 600, cyclical growth sectors such as Technology and Consumer Goods (the Chinese government foresees 5% GDP growth in 2025) were the best performers whereas Banks and Energy saw the biggest drops. On the macro side, in Germany, December’s IFO fell more than expected, dragged down by the expectations index, whereas the ZEW index on economic sentiment rose more than expected. On another note, the CDU leader, F. Merz, announced a € 100 Bn tax cut and a corporate tax cut to 25%. In the UK, November’s general inflation climbed in line with expectations whereas the core data grew less than expected. In the US, November’s retail sales climbed more than expected in general, growing less than expected excluding autos and petrol (core). November’s industrial output slowed down unexpectedly and the confidence index in residential construction (NAHB) for December was also disappointing, remaining at October’s levels. In Japan, Honda and Nissan are in talks for a possible merger that could also include Mitsubishi Motors.
What we expect for today
Stock markets would open flat with some bearish slant, dragged down by the stagnation of the US stock market whereas the automobile sector could continue to benefit from the merger news from Asia. Currently, S&P futures are up +0.10% (the S&P 500 ended -0.09% lower vs. the European closing bell). Asian markets are mixed (China’s CSI 300 +0.60%, Japan’s Nikkei -0.72%).
Today in the euro zone and the UK we will learn November’s inflation, in the US Fed meeting, November’s building permits and housing starts.