EUR 100.00 For Business Accounts Only

IBERIAN DAILY 07 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: MAPFRE.


The Ibex consolidates the 13,250-point level and the DAX hits another record high
European stock markets saw a second session of recovery with volatility amid the widening of the German bond and slowdown fears in the US. Thus, in the STOXX 600, cyclical industries such as Autos and Constructions were the best-performing sectors whereas Real Estate and Consumer Goods continued to post the biggest drops. On the macro side, in the euro zone, as expected, the ECB cut the benchmark rate by -25bps, although not unanimously and at the later press conference C. Lagarde was slightly more cautious. Furthermore, growth forecasts deteriorated whereas inflation expectations for 2025 rose. Separately, European leaders support the EU’s defence plan, and the EU would be willing to relax fiscal targets in order to fund it. In the US weekly jobless claims moderated more than expected and the rise in non-farm productivity in the 4Q’24 was raised slightly. Lastly, January’s trade deficit deteriorated due to the increase in exports ahead of the implementation of tariffs. In trade news, Trump delayed the tariffs on Mexican and Canadian goods included in the USMCA trade agreement until 02 April. In China, February’s imports plummeted. In 4Q’24 business results Broadcom beat expectations, Costco and HP released disappointing earnings.
What we expect for today
European stock markets would see profit taking of up to -1.0%, with cyclical sectors hit, mainly technology, awaiting the US job data that show high probability of disappointment. Currently, S&P futures are up +0.31% (the S&P 500 ended -0.31% lower vs. the European closing bell). Asian markets are sliding (China’s CSI 300 -0.26% and Japan’s Nikkei -2.26%).
Today in the US we will learn February’s job data, in Spain January’s industrial output, in the euro zone the revised GDP and 4Q’24 employment, in Brazil the 4Q’24 GDP and in Mexico February’s inflation.