EUR 100.00 For Business Accounts Only

IBERIAN DAILY 06 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: FERROVIAL, GRIFOLS, IAG, TELEFÓNICA.

MARKETS YESTERDAY AND TODAY

Against a backdrop of uncertainty
The positive tone seen on Wednesday turned around, with the European stock markets falling by -1.5%, and losses accelerating in the US (New York and California have declared a state of emergency). We highlight the poor performance of the Ibex 35 (-2.5%), penalised by the heavy weight of the banking sector on the index. Thus, within the Euro STOXX, all sectors closed in the red, with Banks and Autos being the worst performers and Financial Services and Food seeing the smallest drops. On the macro side, the IMF forecast global growth below 2019 levels (2.9%) due to the expansion of the coronavirus, offering a credit line for poor countries to help them address the disease. In the US, non-farm productivity slowed in 4Q’19, as well as unit labour costs. Separately, weekly jobless claims fell in line with expectations and January’s durable goods orders confirmed the preliminary data. Separately, Kaplan (from the Fed) stated that a new rate cut in March was conditional on the evolution of the coronavirus outbreak. In Japan, household spending contracted less than expected in January.
What we expect for today
Stock markets would open with losses of -2.0% in a volatile session, with US debt yields reaching new lows. Currently, S&P futures are down -1.37% (the S&P 500 closed down -1.04% vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 39.62%). Asian markets are falling (Japan -2.72% and Hong Kong -2.19%).
Today in Germany we will learn January’s factory orders, in Spain January’s industrial output, in the US non-farm job creation, and February’s unemployment rate, and in Mexico December’s fixed investment.