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IBERIAN DAILY 26 JULY + 2Q’22 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACCIONA, ACS.

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’22 results to be released over the coming days in Spain.

The market awaiting the Fed
European stock markets ended with slight gains after the improved prospects on the food crisis, with Ukraine expecting the first grain shipment this week. On another note, gas supply through Nord Stream 1 will be cut slightly more to 20% in the short-term, as according to Russia there are problems in the installation of the rubine. In Europe, fears about a total gas cut-off continue to increase and Germany has initiated a riskier stage that includes gas rationing for the industry.. In the Euro STOXX, all sectors saw gains, led by Banks and Automobiles, whereas Consumer Goods and Telecoms posted the lowest rises. On the macro side, in Germany, July’s IFO showed a mixed reading, with the expectations component falling less than expected, whereas that of the current situation dropped slightly more than expected, but in general the indication is less negative than that shown in July’s manufacturing and services PMI. In Europe, some countries will request exceptions to the -15% gas consumption reductions and Brussels is willing to ease the plan including reserves. In Mexico, May’s IGAI recovered more than expected. In Japan, the BoJ minutes showed growing consumption figures despite the Covid-19 outbreaks. In China, the US authorities have been warned about a possible visit to Taiwan from the speaker of the House of Representatives N. Pelosi. In US Results, Whirlpool Corp and NXP Semiconductors beat expectations, while Walmart released disappointing earnings.
What we expect for today
European stock markets would open flat with the better performance of Technology after Alibaba’s plans of being listed on Hong Kong market, whereas fears about a recession due to Walmart’s poor results could weigh on markets. The debate on the energy rationing and macro doubts in Germany will hit Europe. Currently, S&P futures are down -0.3% (the S&P 500 ended -0.1% lower vs. the European closing bell). Volatility in the US decreased (VIX 23.36). Asian markets are mixed (China’s CSI 300 +0.9% and Japan’s Nikkei -0.1%).
Today we will learn in the US July’s Richmond manufacturing index, June’s new home sales and July’s Conference Board consumer confidence. Also, the IMF will update its growth forecast today. In US business results, General Motors, General Electric, Coca-Cola, Mc Donald’s, Moody’s, Microsoft and Alphabet, among others, will release their earnings. As for auctions, Italy will issue € 3.25 Bn in inflation-linked bonds due 2033, 2041 and ordinary bonds due 2024.