EUR 100.00 For Business Accounts Only

IBERIAN DAILY 02 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ELECTRICITY SECTOR, ENCE, REPSOL, SIEMENS GAMESA.

IBEX at the 8,200 support level
Geopolitical risks continued to pressure European stock markets, which saw widespread sell-offs, while sovereign debt acted as safe-haven. In the Euro STOXX, all the sectors fell, with Travel & Leisure and Banks leading the drops, whereas Media and Pharma were the best relative performers. On the macro side, in the euro zone, February’s final manufacturing PMIs was cut slightly due to France and Germany, while in Spain it climbed more than expected to 56.9. In the US, February’s ISM rose more than expected and continues to support dynamic growth in 1Q’22, whereas January’s construction cost rose far more than the consensus expected. On another note, Mester from the Fed warned that the conflict in Ukraine entails upward risks on inflation and downward risks on US growth. In US business results, Autozone beat expectations, whereas Domino’s Pizza released disappointing earnings.
What we expect for today
European stock markets would open with gains of +0.5%, with the oil sector underpinned by Brent prices exceeding US$ 110/barrel. Currently, S&P futures are up +0.3% (the S&P 500 was unchanged vs. the European closing bell). Volatility in the US rose (VIX 33.32). Asian markets are sliding (China’s CSI 300 -0.9%, and Japan’s Nikkei -1.7%).
Today in Germany we will learn February’s unemployment, in the euro zone February’s inflation and in the US ADP private employment for February and the Fed’s Beige Book. In US business results, Dollar Tree, among others, will release its earnings. In debt auctions: Germany (€ 1.5 Bn in bonds due 2030).