EUR 100.00 For Business Accounts Only

IBERIAN DAILY 18 NOVEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: REPSOL.

MARKETS YESTERDAY AND TODAY

The Ibex loses ground and returns to 9,000 points
European stock markets ended with a sideways performance again above the current support levels on fears that the rise in inflation could force Central Banks to act earlier. With this in mind, in the Euro STOXX, the best-performing sectors were Retail and Technology, whereas Real Estate and Travel & Leisure ended as the worst performers. On the macro side, yesterday the ECB warned of excesses on stock markets, in HY fixed income and in the real estate sector, assets in which it forecast a risk of correction. In the UK October’s general and core inflation sped up above expectations to highs from the past 10 years. In the US, mixed data in the real estate sector in October, as construction permits rose more than expected whereas housing starts slowed down unexpectedly. In Japan, PM F. Kishida announced the fiscal stimulus package will reach US$~500 Bn and will be aimed at wealth redistribution. In US business results, Nvidia and Cisco Systems released results in line with expectations.
What we expect for today
European markets would open mixed, with Technology and Oil companies penalised by the drop in the Brent crude oil price. Currently, S&P futures are up +0.2% (the S&P 500 was up +0.1% vs. its price at the closing bell in Europe). Volatility in the US increased (VIX 17.11). Asian markets are falling (China’s CSI 300 -0.95% and Japan’s Nikkei -0.03%).
Today in the US we will learn weekly unemployment and November’s Philadelphia Fed index. In debt auctions: Spain (€ 5 Bn in bonds due 2027, 2029 and 2031) and France (€ 9.25 Bn in bonds due 2024, 2027 and I/L bonds due 2026, 2028 and 2030).