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IBERIAN DAILY 12 JANUARY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: REPSOL.

Stock markets start the year on the right foot
Despite the geopolitical tension, the first full week of the year ended with gains of more than 2% in Europe, and slightly less in the US. In the STOXX 600, almost all the sectors ended the week with gains, led by Technology and Industrials, with Insurance and Food being the worst relative performers. On the macro side, in the euro zone November’s retail sales rose more than expected. In Spain, November’s industrial output grew at its quickest pace since March’23. In France, the finance committee rejected the proposal for spending and income in the 2026 budget. In the US, non-farm job creation came in slightly below expectations, but the unemployment rate fell more than expected, and wage gains rose more than expected. January’s University of Michigan consumer confidence rose more than expected to its highest level since September. US oil companies would have showed skepticism towards Trump’s proposal of investing US$ 100 Bn in Venezuela, while S. Bessent warned that this week some sanctions could begin to be lifted. Separately, J. Powell has been subpoenaed for the criminal investigation opened by the Dept. of Justice on the case of the Fed headquarters renovation. In Brazil, December’s inflation remained at the expected 4.3% YoY. On the geopolitical front, Germany proposed a NATO mission in Greenland to ease Trump’s doubts.
What we expect for today
European stock markets would open flat, with a slightly bullish slant and with solid performance from growth and companies linked to gold. Currently, S&P futures are down -0.57% (the S&P 500 ended flat vs. the European closing bell). Asian markets are rising (China’s CSI 300 +0.66%, Japan’s Nikkei +1.56% and Kospi +0.84%).
Today in the euro zone we will learn January’s Sentix index.