EUR 100.00 For Business Accounts Only

IBERIAN DAILY 07 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CHANGES IBEX35, REPSOL.

The Ibex targets the 9,500-point level
The European stock markets rose by 0.5% awaiting J. Powell’s speech before the US Congress. Thus, within the Euro STOXX, the best-performing sectors were Travel & Leisure and Utilities, whereas Basic Resources and Chemicals posted losses. On the macro side, in the Euro zone, March’s SENTIX confidence index fell unexpectedly, whereas retail sales climbed less than expected in January. Nonetheless, from the ECB, R. Holzmann (hawkish) defended the need of 50bps rate hikes at the next four meetings, which would bring benchmark interest rates to 5% from 3% currently. In China, the trade surplus rose more than expected in view of the sharp drop in imports.
What we expect for today
European stock markets would see a slightly bearish opening. Currently, S&P futures are up +0.22% (the S&P 500 ended -0.58% lower vs. the European closing bell). Volatility in the US decreased (VIX 18.61). Asian markets are mixed (China’s CSI 300 -1.25% and Japan’s Nikkei +0.30%).
Today in Germany we will learn January’s factory orders, in Spain January’s industrial output, in Mexico February’s consumer confidence, and in the US January’s final wholesale inventories. J. Powell will speak before the US Congress. As for auctions, Spain will issue € 5.5 Bn in 6 &12M T-bills.


COMPANY NEWS

CHANGES IBEX 35. The Technical Advisory Committee will meet today. We expect no changes.
At today’s closing bell, the IBEX Technical Advisory Committee will meet for its first follow-up meeting of the year. We expect no changes to be made in the components. In the event of changes in weightings, they would be of little impact.