Last week, China kept on displaying increasingly concerning weakness signs and the first rise in interest rates in a developed economy took place in New Zealand. Wall Street seems to be outperforming the rest of the markets, namely thanks to the corporate operation. Gap between growing advanced economies and frail developing zones gradually consolidates. Russia called off again its debt issuance whereas Ireland continues to place 10-year bonds without any difficulties. Industrial production in the Eurozone (Spain included) and the UKis looking up. Some contrasts produce puzzlement but reinforce the outlooks forecasting a recovery cycle mainly based in the developed countries.
“Let’s await and see but reaction time is running out” declares Bankinter.
This week is meant to be decisive to see the path of markets and economy. Coming up, relevant macro indicators from the US and ZEW Economic Sentiment Survey from Germany (expected negative). However, economy is assimilating news and adapting to a new scenario where Ukraine and Chine issues may overshadow everything.
Here’s what market makers are talking about today:
BANKINTER. In the next days, stock markets will stabilise, euro won’t surpass 1.40 level, yen will apreciate about 140, periferal bonds will withstand, core bonds will strengthen and gold will serve as refuge investment worth $1,400 or above.
BANKIA. Telefónica valoration is modified from €14.6 to €13/share on the grounds of new profit predictions. Company’s objective puts forward an organic sales increase in 2013 with exchange rates similar to 2013 average. As for Ebitda, it foresees a margin dropping by 1 point. Analysts find plans feasible.
LINK. Mapfre agrees to distribute dividend for a value of €0.13/share and announces it is Mapfre’s goal to accomplish revenues above €30bn in three years. The organization intends to consolidate the leadership where presence is firm and to develop in North America, Europe and Asia.
AFI. Emerging economies situation is once again at the forefront. Risk asstes drop with the news flow about Crimea and, above all, Chinese willingness to stand for corporate bond defaults. But China is certainly not the only one involved, as growth proves difficult without the recovery of global demand. Consequently, Euro is appreciating, acts as a refuge currency and our sales to emerging countries decline.
SABADELL. Vodafone confirms the purchase of ONO for €7,200M. Mobile telephone market moves toward consolidation. Jazztel stocks boost as Orange may buy it so as not to fall behind.