EUR 100.00 For Business Accounts Only

IBERIAN DAILY 08 JANUARY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: IBERDROLA, OHL, SIEMENS GAMESA.

MARKETS YESTERDAY AND TODAY

Hesitant markets
European markets began the session by rising around +0.5%, gains which slowly disappeared, and with the IBEX always bringing up the rear with worse relative performance of -0.3%. In the Euro Stoxx, the gains were led by Technology and Autos, whereas Energy and Utilities fell the most, with only 4 sectors in the red. On the macro side, in Spain a fragile government (and which probably will not last long) was formed after the leader of the PSOE, Pedro Sanchez, was confirmed as PM after obtaining a simple majority. In the euro zone, November’s retail sales rose more than expected. Meanwhile, December’s inflation rose in line with expectations to 1.3% YoY, with the core figure remaining at the previous 1.3%. In the US, the non-manufacturing ISM rose more than expected in December, suggesting growth of around 2.0% YoY. Separately, November’s durable goods orders were cut slightly. Lastly, the trade deficit for November was less than expected thanks to the improvement in exports.
What we expect for today
European bourses would open with drops of -0.8% that should ease throughout the session after Iran attacked two US bases in Iraq with missiles. Currently, S&P futures are down -0.35% (the S&P 500 closed -0.1% lower vs. its price at the closing bell in Europe). Volatility in the US rose slightly (VIX 12.40%). Asian markets are sliding (Japan -1.60% and Hong Kong 1.20%).
Today in the euro zone we will learn December’s economic climate index and in the US December’s ADP private employment. Debt auctions: Germany (€ 5 Bn in bonds due 2030) and Portugal & Ireland (10Y syndicated bond).