EUR 100.00 For Business Accounts Only

IBERIAN DAILY 31 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: LIBERBANK, TÉCNICAS REUNIDAS.

MARKETS YESTERDAY AND TODAY

Profit taking in the last days of the year
Losses aggravated with the US opening in a session with low volume, few references and debt yield widening. In the Euro STOXX, all sectors saw losses, but cyclical industries such as Basic Resources, Energy and Banks fared better while drops were led by Telecoms and Industrials. On the macroeconomic level, in Spain, the 3Q’19 GDP confirmed the 0.4% quarterly data although the YoY rate came in at 1.9% vs. 2.0% preliminary and 2.2% previously, although with the recovery of private consumption and investments. On another note, December’s inflation rose less than expected to 0.8% YoY. Finally, the PSOE party reached an investiture agreement with Unidas Podemos and the nationalist parties with a programme that will increase social spending, taxes (income, inheritance tax, Google and Tobin rate) and with the derogation of the job reform, control of residential rental and rise in minimum wage to € 1,200. In the US, November’s preliminary trade deficit fell unexpectedly thanks to the recovery of exports and the slowdown of imports while Chicago PMI rallied in December more than expected and November’s pending home sales rose in line with expectations. In Brazil, the primary public deficit came in lower than expected in November while the debt/GDP fell to 48.9%. In China, December’s manufacturing remained at 50.2 seen in November with rises in external orders for the first time since May’18 while the non-manufacturing PMI fell unexpectedly to 53.5 vs. 54.4 previously.
What we expect for today
In a short session, European bourses would trade flat with some bearish bias. Currently, S&P futures are up +0.1% (the S&P 500 closed -0.13% lower vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 14.8%). Asian markets are sliding (Japan -0.8% and Hong Kong -0.5%).
Today in the US we will learn December’s Conference Board consumer confidence.