EUR 100.00 For Business Accounts Only

IBERIAN DAILY 18 JULY + 2Q’23 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACCIONA, REPSOL, SACYR.

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 2Q’23 results to be released over the coming days in Spain.

Stock market euphoria on the US inflation data
Profit taking due to the cycle
China’s disappointing GDP data and the probability that the extreme temperatures generate poor activity figures also in the 3Q’23 resulted in drops in European indices. In the Euro STOXX, Pharma and Banks were the best performers whereas Consumer Goods, Technology and Travel&Leisure ended with drops >-1.5%. On the macro side, in the US, July’s manufacturing Empire index dropped less than expected, remaining in positive territory. From the Fed, J. Powell reiterated that the FOMC’s majority opinion continues to be that two additional rate rises would be necessary. On the geopolitical front, Russia will end its participation in the grain export agreement through the Black Sea after the Ukrainian attack to Crimea’s bridge, alleging that the Western countries have not met the terms of the agreement. On another note, China announced a plan to boost consumption without further details (purchase of household appliances, cars, etc.).
What we expect for today
European stock markets would open with slight gains, awaiting US macro data. Currently, S&P futures are down -0.06% (the S&P 500 ended flat vs. the European closing bell). Volatility in the US dropped (VIX 13.48). Asian stock markets are mixed (China’s CSI 300 -0.20%, Japan’s Nikkei +0.12%).
Today in the US we will learn July’s retail sales and industrial output. In US 2Q’23 Results, Bank of America, Morgan Stanley, Prologis and Bank of NY Melon, among others, will release their earnings. As for auctions, Germany will issue € 6 Bn in bonds due 2025.