EUR 100.00 For Business Accounts Only

IBERIAN DAILY 11 JANUARY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: SACYR.

MARKETS YESTERDAY AND TODAY

The US drags on Europe
The main US indices opened with sharp losses, which highly affected Europe, especially the core segment, on fears about tomorrow’s inflation data and the possibility of rising sovereign bond yields due to an early balance sheet reduction by the Fed. Thus, within the Euro STOXX, the only sectors that posted gains were Food and Insurance, whereas Technology and Industrials were the worst relative performers. On the macro side, in the Euro zone, January’s investor confidence index climbed unexpectedly, whereas the unemployment rate fell to 7.2%, as expected. In the US, J. Powell will insist today at his nomination hearing at the Senate that the Fed will use all its tools to prevent high inflation to become persistent, with the market already pricing in almost 4 rate hikes and the beginning of balance reduction in the 2H’22.
What we expect for today
European stock markets would see gains of +0.5% after the recovery of the US indices at the end of the session with a significant improvement of growth sectors. Currently, S&P futures are down -0.1% (the S&P 500 ended +1.28% higher vs. its level at the European closing bell). Volatility in the US rose (VIX 19.4). Asian markets are sliding (China’s CSI 300 -0.85% and Japan’s Nikkei -0.9%).
Today we will learn in Spain November’s industrial output and in the US the NFIB small business confidence index. In debt auctions: Netherlands (€ 5 Bn in bonds due 2026) and Germany (€ 750 M in I/L bonds due 2033).