IBERIAN DAILY 27 DECEMBER (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: SOLARIA.
A transition session
The initial slight gains remained for European stock markets without significant dispersion among sectors (none of them in negative territory). On the macro side, in the US, already with the market closed, December’s Richmond business index was in line with expectations whereas weekly jobless claims came in below expectations (without expectations of a new rate cut until May/June meeting). In China, business profits through November were below expectations although falling at a slower pace than in previous readings. In Japan, December’s Tokyo inflation reached 3.0% (two tenths above the previous reading), whereas November’s retail sales and industrial output came in better than expected. On the geopolitical front, Vladimir Putin stated that Russia is open to the Slovakian proposal of holding peace talks with Ukraine in order to put an end to the conflict whereas the controversy and accusations about the aircraft accident in Azerbaijan continue.
What we expect for today
Stock markets would open with a bullish slant, some volatility and low volume in a session lacking references or catalysts. Currently, S&P futures are slightly down (the S&P 500 ended +0.7% higher, fuelled once again by the technology sector vs. the European closing bell). In Asian markets, China’s CSI 300 is down -0.11% and Japan’s Nikkei is up >+1.8%.
Today in the US we will learn November’s wholesale inventories and in Brazil November’s unemployment rate.