EUR 100.00 For Business Accounts Only

IBERIAN DAILY 14 JANUARY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, LIBERBANK, MEDIASET, SACYR, TECNICAS REUNIDAS.

MARKETS YESTERDAY AND TODAY

Without market news
Despite a new attack on a US military base in Iraq, stock markets ended with gains. In the Euro STOXX, Real Estate and Basic Resources led gains while Travel and Leisure saw the biggest drops. On the macroeconomic level, in Spain, the government will raise pensions by 0.9% at the Cabinet meeting although with the long-term target of linking them to inflation, which according to the BoS would mean 2 points of GDP in 2030 and more than 3 points in 2050. In the euro zone, C.Lagarde stated that the new ECB strategy will be unveiled on the 23rd of January. In the UK, November’s industrial production fell less than expected while November monthly GDP slowed down -0.3% vs. the previous and expected stagnation. In the US, E. Rosengren questioned an increase in inflation despite tariffs and left the door open to new stimulus if necessary. Separately, the US Treasury removed China from the currency manipulator list ahead of the signing of the trade agreement tomorrow. In Mexico, October’s fixed investment slowed down slightly more than expected. In China, December’s trade surplus was higher than expected, with both exports and imports rising above expectations.
What we expect for today
Stock markets would open with slight gains of +0.25%. Currently, S&P futures are unchanged (the S&P 500 closed +0.20% higher vs. its price at the closing bell in Europe). Volatility in the US dropped (VIX 12.32%). Asian markets are mixed (Japan +0.73% and Hong Kong -0.36%).
Today in the US we will learn December’s general and core inflation figures. In US Results Citi, JPMorgan and W. Fargo, among others, will release their earnings. In debt auctions, Spain will issue 6M and 12M T-bills (€ 4.5 Bn) and syndicated 10Y bonds; the Netherlands 20Y bonds (€ 1.25 Bn), and Italy 3.7Y and 20Y bonds (€~6.8 Bn).