EUR 100.00 For Business Accounts Only

IBERIAN DAILY 09 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: BANKING SECTOR, INDRA.

France looking forward optimistically
It was a positive week for European stock markets, with average gains for the German DAX and the IBEX of +4.0% and a French CAC that, although lagging, improved as the week went on, underpinned by the falling risk premium and the hope new budgets will be approved in the coming weeks. In the STOXX 600, the best-performing sectors were generally cyclicals, with Consumer Goods and Retail standing out compared to Energy and Utilities, which fell the most. On the macro side, in the euro zone the final reading for the 3Q’24 GDP confirmed the preliminary data. In Germany, October’s industrial output came in below expectations, stressing the current rough patch for the country. In the US, employment data continued to be strong, with non-farm job creation above expectations at 227,000 vs. the previous month’s 36,000 (revised), but with the unemployment rate rising to 4.2% (Fed Funds increasing possibility of seeing a rate cut in December) and average hourly wages increasing (+0.4% MoM and +4.0% YoY). U. Michigan consumer confidence for December also beat expectations. In China, inflation slowed more than expected in November, but with the services component rising, whereas production prices slowed their contraction more than expected.
What we expect for today
Stock markets would open with slight drops after a week of recovery. Currently, S&P futures are down -0.11% (the S&P 500 was flat vs. the European closing bell). Asian markets are mixed (China’s CSI 300 -0.34%, Japan’s Nikkei +0.14%), with South Korea dragged down by the political uncertainty after the president’s impeachment was unsuccessful.
Today in the euro zone we will learn December’s Sentix and in Mexico November’s inflation.