EUR 100.00 For Business Accounts Only

IBERIAN DAILY 22 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CAF, ELECTRICITY SECTOR, TELEFÓNICA.

The Ibex near 10,100 points
It was a new session of moderate corrections for European stock markets, where the bullish pattern seen since the end of October is apparently giving signs of exhaustion. Thus, in the STOXX 600, most sectors ended with drops, led by Automobiles and Consumer Goods vs. the defensive segments of Pharma and Food that ended practically flat. On the macro side, in the US, weekly jobless claims climbed less than expected, whereas December’s Philadelphia Fed index dropped more than expected, with sharp falls in orders and capex. Meanwhile, the 3Q’23 GDP was cut more than expected, as well as the underlying consumption deflator. In Germany, the slowdown in November’s IFO aggravated to -12 from -8. In Japan, November’s general and core inflation moderated in line with expectations, with the core data at lows from July’22. In China, some of the large state banks cut the deposit rate for the third time in 2023. On the geopolitical front, Angola announced it will abandon OPEP (3.0% production), leaving the cartel with 12 countries.
What we expect for today
European stock markets would open flat with some bearish bias. Currently, S&P futures are down -0.12% (the S&P 500 ended +0.49% higher vs. the European closing bell). Volatility in the US rose (VIX 13.65). Asian stock markets are climbing (China’s CSI 300 +0.09%, Japan’s Nikkei +0.03%).
Today in the UK we will learn November’s retail sales and in the US November’s durable goods orders, personal outlays, underlying consumption deflator and new home sales.