EUR 100.00 For Business Accounts Only

IBERIAN DAILY 07 DECEMBER (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: UNICAJA.

MARKETS YESTERDAY AND TODAY

A relatively benign Omicron variant calms stock markets
Stock markets rallied sharply fuelled by the low level of hospital admissions in South Africa despite the spread of the Omicron variant. Thus, standing out within the Euro STOXX was Leisure, which was one of the hardest-hit sectors by the new variant, whereas Technology was the only sector that ended in the red, still affected by the delisting of Didi from the US stock market due to pressure from the Chinese Govt. On the macro side, in the Euro zone, December’s Sentix Investor Confidence index contracted less than expected. Separately, the IMF might cut its growth estimates for the Euro zone slightly in Jan (from 5% and 4.3% in 2021-22) as announced by its managing director at yesterday’s Eurogroup meeting. In Mexico, November’s Consumer Confidence fell vs. the previous month. Early this morning in China, both exports and imports grew more than expected in November. Additionally, the PBoC lowered the liquidity requirements of the financial system in a further attempt to bolster growth. In Japan, October’s leading indicator increased slightly less than expected.
What we expect for today
The European stock markets would open again with rises, fuelled by news on a relatively benign Omicro variant and the good macro data in China. Currently, S&P futures are up +0.58% (the S&P 500 ended +0.27% higher vs. its level at the European closing bell). Volatility in the US fell (VIX 27.2). Asian markets are rising (China’s CSI 300 +0.4% and Japan’s Nikkei +1.9%).
Today we will learn in the Euro zone the 3Q’21 GDP (3.7% estimated YoY vs. 3.7% previously) and December’s ZEW Economic Sentiment index (25.9 previously), in Germany the ZEW index for December (5.7 estimated vs. 12.5 previously) and October’s industrial output data (-2.9% estimated YoY vs. -1% previously), and in the US the unit labour costs (8.3% estimated vs. 8.3% previously), the 3Q’21 non-farm productivity (-4.9% estimated vs. -5% previously), and October’s trade balance (US$ 66.7 Tn vs. US$ 80.9 Tn previously). In debt auctions: Spain will issue 6M & 12M T-bills.