EUR 100.00 For Business Accounts Only

IBERIAN DAILY 20 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: GRIFOLS, SACYR, TELEFÓNICA.

A week of high volatility
It was a week of strong volatility marked by the liquidity problems of US regional banks and Crédit Suisse in Europe (where UBS agreed the acquisition of the latter for more than € 3 Bn) and the support measures adopted throughout the week to minimize the impact. Despite the efforts and the liquidity injection, First Republic Bank slid last Friday -25%. In this regard, the ECB and the press conference held later marked the agenda, where, as expected by the consensus, the ECB raised interest rates by +50bps, with the next decision depending on the performance of the economy, inflation and the good evolution of monetary transmission mechanisms. Thus, the Euro STOXX50 ended last week down -3.83%, the Dax -4.37%, whereas the Ibex35 was down -6.00%. The best-performing sectors in the Euro STOXX were Technology and Food, whereas Basi Resources and Banks ended with the worst relative performance. On the macro side, in the euro zone, February’s final inflation was in line with expectations. France will vote today a motion of censure to the government that is not expected to go through. In the US, February’s industrial output came in below expectations ,as well as the University of Michigan Confidence.
What we expect for today
European stock markets would open with drops of around -1.0%. Currently, S&P futures are down -0.1% (the S&P 500 ended -0.15% lower vs. the European closing bell). Volatility in the US rose (VIX 25.50). Asian markets are sliding (China’s CSI 300 -0.41% and Japan’s Nikkei -1.40%).
Today we will learn in Germany and the Euro zone March’s ZEW economic sentiment, and in the US February’s existing home sales.