EUR 100.00 For Business Accounts Only

IBERIAN DAILY 02 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ENCE, GRIFOLS, OHL.

MARKETS YESTERDAY AND TODAY

Stock markets speed up
The European stock market posted big gains yesterday as fixed income markets stabilised and with ell eyes on the next US stimulus package, which will focus on infrastructures, following the imminent approval of the US$ 1.9 Tn plan by the Senate. Thus, the Euro STOXX increased by +1.7%, with Travel & Leisure and Retail posting the biggest gains, whereas Utilities and Media were the worst relative performers. On the macro side, in the Euro zone, February’s final manufacturing PMI was raised slightly. In Germany, February’s preliminary inflation rose unexpectedly to 1.3% YoY. In the US, February’s ISM manufacturing index climbed above expectations, hinting at growth above the 3.5% QoQ annualised expected by the consensus for 1Q’21. As for Covid-19, Novavax expects the FDA to approve its vaccine in May’21. On another note, the US registered the record of Covid-19 variants and Fauci was concerned about New York’s variant. Lastly, a study shows that Brazil’s variant is the most contagious one, evading the immunity of people already infected. In US business results, DENTSPLY came in better than expected, and Perrigo and NRG Energy worse.
What we expect for today
European indices would replicate the drops of Asian markets following the warnings of market bubble by China’s banking watchdog, hinting at a reduction of leverage. Currently, S&P futures are down -0.35% (the S&P 500 closed practically flat vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 23.35). Asian markets are falling (CSI 300 -1.3%, Japan -0.9%).
Today we will learn in Germany January’s retail sales and February’s unemployment rate, and in the Euro zone February’s preliminary inflation data. In US business results, Autozone, Target Co and Hewlett Packard, among others, will release their earnings. In debt auctions, Spain (€ 7 Bn in 6M & 12M T-bills) and Germany (€ 600 M in inflation-linked bonds due 2030 and 2046).