EUR 100.00 For Business Accounts Only

IBERIAN DAILY 08 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ELECTRICITY SECTOR, OHL.


MARKETS YESTERDAY AND TODAY

Tension surrounding Brexit heightens
It was a session of moderate losses with few macro references, and the most noteworthy aspect was the rising tension surrounding Brexit in view of the stagnation of negotiations, which paradoxically led the FTSE to have the biggest gains in Europe (due to the strong depreciation of the GBP). With the markets closed, B. Johnson eased the tension after announcing that he will resume face-to-face negotiations with Ursula von der Leyen (President of the Commission) to find a compromise. In the Euro STOXX, the worst-performing sector was Banks, which saw part of the gains from the past few days erased due to the excuse that the ECB could lengthen the ban on paying out dividends (here the rumours change daily, and today there is suggestion that some banks will be allowed to pay dividends; the decision will be released at the end of this month), whereas cyclical sectors linked to raw materials such as Chemicals and Basic Materials rose the most. In the euro zone, the Sentix investor confidence index for December recovered more than expected. This morning in Japan, both the 3Q’20 GDP and October’s trade surplus came in above expectations.
What we expect for today
We expect a slightly bearish opening with all eyes on Brexit and the evolution of talks on a fiscal package in the US. Currently, S&P futures are down -0.22% (the S&P 500 closed down -0.12% vs. its price at the closing bell in Europe). Volatility in the US remained stable (VIX 22.82). Asian markets are falling (CSI 300 -0.7%, Japan -0.6%).
Today the euro zone we will learn the 3Q’20 GDP and December’s ZEW index and in the US non-farm productivity and unit labour costs for 3Q’20.