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IBERIAN DAILY 05 JANUARY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: NEINOR HOMES, TELEFÓNICA.


MARKETS YESTERDAY AND TODAY

Hesitant stock markets amid the third wave and the electoral process in Georgia
The first European session saw a decreasing performance, where the negative US opening (as a result of technological groups) and the expectations of further restrictions in the UK (level 4) largely erased the euphoria seen in the morning (in view of the strength of raw materials and the European manufacturing sector). Thus, in the Euro STOXX, Food, personal care and Utilities led gains, with Real Estate and Energy lagging behind. As for macroeconomic data, December’s final PMI saw strength in Europe (expansion zone and at highs from the past two and a half years) despite a slightly lower reading than initially expected. Spain’s data were disappointing. In the US, December’s final manufacturing PMI provided a positive surprise.
What we expect for today
European markets would open with slight drops in view of doubts on the restrictions of the third wave and the electoral process in Georgia where the control of the US Senate is at stake (Blue Wave). Currently, S&P futures are up +0.16% (the S&P 500 closed flat vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 26.9%; +4pp). Asian markets are trading with mixed results (China +1.4%, Japan -0.9%).
Today in Europe we will learn M3, in Germany November’s retail sales, in Spain December’s unemployment, in the US December’s manufacturing ISM. The second electoral round will also be held in Georgia to elect 2 senators and talks among OPEC+ producing countries will resume. As for auctions, Germany will issue € 6 Bn in bonds due 2022.