EUR 100.00 For Business Accounts Only

IBERIAN DAILY 17 OCTOBER + 3Q’23 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACCIONA, ACCIONA ENERGÍA, CAF, CIE AUTOMOTIVE, FERROVIAL.

At the end of today’s report, and during the entire results season, we will include a presentation with positive and negative results highlights and previews for the 3Q’23 results to be released over the coming days in Spain.

All eyes on the Middle East
The session improved as it progressed in Europe, ending with gains and managing to erase the red numbers from the start of the session, with tension between Israel and Hamas continuing in view of a potential ground invasion. In the STOXX 600, almost all the sectors ended with gains, led by Retail and Basic Resources, with Media and Telecoms ending flat. On the macro side, in the US October’s Empire manufacturing index fell more than expected into negative territory, with a drop in new orders. A. Goolsbee of the Chicago Fed warned that the deflation process in the US is a trend, although the reversal in the rent component for September urges caution. From the ECB, P. Hernandez de Cos stated that keeping interest rates at current levels for a long time could be enough to reduce inflation to 2%. In Spain, the acting administration sent the 2024 budget plan to Brussels including a -3.0% GDP deficit (vs. 3.9% in 2023) and a 106% public debt. In Italy, the Govt. announced a deficit of -4.3% in 2024 vs. -3.6% expected for 2023, although this includes a € -5.5 Bn cut in spending and asset sales (BMTS and ITA). In China, Country Garden will see tomorrow the deadline for the payment of the debt interests in dollars to avoid receivership. In US business results, Charles Schwab released better earnings than expected.
What we expect for today
European stock markets would open flat, with a slight bearish slant awaiting macro data and business earnings. Currently, S&P futures are down -0.17% (the S&P 500 ended flat vs. the European closing bell). Volatility in the US fell (VIX 17.91). Asian stock markets are rising (China’s CSI 300 +0.36%, Japan’s Nikkei +0.91%).
Today in Germany we will learn August’s ZEW index, in the UK August’s ILO unemployment rate and in the US retail sales and industrial output for September. Debt auctions: Germany (€ 5 Bn in bonds due 2025). In US business results, Bank of NY, Bank of America, Goldman Sachs and United Airlines, among others, will release their earnings.