EUR 100.00 For Business Accounts Only

IBERIAN DAILY 21 APRIL (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ENAGÁS, FERROVIAL, MELIÁ HOTELS, PRISA, REPSOL.

MARKETS YESTERDAY AND TODAY

US tech sector underpinning the market
The markets fell gradually throughout the day, closing with slight gains in the Euro zone (except the Ibex 35), but in negative territory in the US in a highly volatile session. Doubts on both sides of the Atlantic lie in the impact from COVID-19 on sales this season and the sharp and general guidance cuts. In the Euro Stoxx, the best-performing sectors were Pharma and Consumer Goods, whereas Basic Materials and Utilities were the worst relative performers. On the macro side, in the euro zone the trade surplus rose more than expected in February. In Spain, the BoS expects activity levels to fall between -6.6% and -13.6% in 2020 (if activity does not return by mid-June), with unemployment rising to between 18.3% and 21.7% (not including temporary layoff plans), and the public deficit would rise to between 7% and 11% of GDP. Separately, Spain and Italy are banding together to demand a reconstruction plan worth € 1.5 Tn. In the US, the Chicago Fed national activity index fell slightly more than expected, registering a historical drop. Separately, banks warn that the new aid plan for SMEs for another US$ 300 Bn could be used in less than a week. In US business results, Trust Financial and Halliburton beat expectations.
The markets would open with losses of around -2.0%. Currently, S&P futures are down -0.48% (the S&P 500 was down -1.5% vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 43.83%). Asian markets are falling (Japan -2.02% and Hong Kong -2.25%).
Today in the UK we will learn the ILO unemployment rate for February, in Germany April’s ZEW and in the US March’s second-hand home sales. In US business results, Travelers, PACCAR, Snap-on, Netflix and Coca-Cola, among others, will release their earnings. Debt auctions: Germany (€ 5 Bn in bonds due 2022).