EUR 100.00 For Business Accounts Only

IBERIAN DAILY 13 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CHANGES IBEX, IBERDROLA.

The ECB follows the script
The most-awaited event of the week did not bring any surprises, and the ECB cut rates by -25bps to 3.05% (despite the discussion about the possibility of cutting 50bps). C. Lagarde was in favour of further rate cuts to neutral levels (near 2.05%), not making any reference in her communiqué on maintaining a restrictive monetary policy, cutting 2024/25 growth forecasts to 0.7% and 1.1%, respectively and inflation to 2.4% and 2.1%. Thus, in the STOXX 600, Automobiles and consumer Goods were the best-performing sectors vs. the bigger drops of Basic Resources and Retail. In France, E. Macron postponed the appointment of the new PM to this morning. In Switzerland the Central Bank cut rates by -50bps unexpectedly, the biggest rate cut in 10 years. In the US November’s production prices and weekly jobless claims rose more than expected. In Brazil, October’s retail sales rose more than expected. In Japan, the 4Q’24 manufacturing Tankan climbed more than expected whereas that of services dropped less than expected. In China, the Economy Committee disappointed the market given the absence of details on the stimulus although hinting at higher fiscal deficit and a laxer monetary policy.
What we expect for today
Stock markets would open with drops of -0.3%, with those companies exposed to China dragged down by the lack of news and details on the stimulus. Currently, S&P futures are up +0.13% (the S&P 500 was down -0.25% vs. the European closing bell). Asian markets are sliding (China’s CSI 300 -1.50%, Japan’s Nikkei -0.95%).
Today in the UK we will learn October’s GDP and industrial output, in the euro zone October’s industrial output and in Spain November’s final inflation.


COMPANY NEWS

CHANGES IBEX 35. The Technical Advisory Committee makes no changes in its December meeting.
Yesterday the IBEX 35’s Technical Advisory Committee, in its second follow-up meeting for the year, made no changes to index components, as expected. As for weight changes, it lowered the coefficient of Colonial from 60% to 40% and raised that of Indra from 80% to 100%. Moreover, the Committee indicated that the individual weighting of the stocks will be adjusted to meet the 20% limit. These modifications will go into effect on 23 December, and thus the adjustment to the index will be carried out on Friday, the 20th of December.