IBERIAN DAILY 27 JUNE (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACCIONA, ELECTRICITY SECTOR, LAR ESPAÑA, TÉCNICAS REUNIDAS.Powell’s speech sets tone for the week
It was another volatile week for European stock markets, which managed to erase the drops by the end of the week and were marked by the speeches before Congress by J. Powell, who suggested the Fed is willing to continue raising rates until inflation is under control but is aware of the monetary strain and does not wish to cause a recession. With all this in mind, the IBEX 35 ended the week with gains of +1.21% vs. the DAX, which fell -0.07% and the Euro STOXX 50, which rose +2.8%. The best-performing sectors in the Euro STOXX were Consumer Goods and Technology, which ended with gains of more than +5%, whereas Basic Materials and Autos ended with losses of -3%. On the macro side, in Germany the IFO for June fell slightly more than expected. In the US, new home sales for May rose sharply, whereas the Fed’s Bullard said fears of a recession are excessive, whereas Daly backed another +75bps rise in the next meeting. In Mexico, April’s IGAE economic activity index was better than expected. In China, there are signs that the economy is recovering, with May’s industrial profits slowing the pace of drops. Russia did not meet its debt payment due to the sanctions, and now the G7 could apply sanctions on gold imports and set a price limit on oil.
What we expect for today
European markets would open with slight gains, offsetting the poor previous week. Currently, S&P futures are up +0.1% (the S&P 500 ended up +0.7% vs. the European closing bell). Volatility in the US decreased (VIX 27.23). Asian markets are rising (China’s CSI 300 +1.45% and Japan’s Nikkei +1.54%).
Today the EU’s G7 meeting will be held (26-28/06) and in the US we will learn durable goods orders (May’s preliminary data) and pending home sales (May). In debt auctions, Germany placed € 3 Bn in 6M t-bills and France € 5.4 Bn in 3M, 6M and 12M t-bills.
Acciona is the parent company of a construction group. Co. is engaged in general construction activities in the areas of civil engineering and buildings, including railways, marine and hydraulic works, motorways and airports, town planning, conduits, pavements, parking lots, and industrial and urban buildings. In addition, Co. is engaged in the provision of real estate services, the operation of parking lots, telecommunications, services, ecology and alternative means of energy. Co.'s operations are organized in six business divisions: Infrastructures, Real Estate, Energy, Water, Environmental & Urban Services and Logistic & Transport Services.
Lar Espana Real Estate SOCIMI SA is a Spain-based company primarily engaged in the operation of retail Real Estate Investment Trusts (REITs). The Company specializes in acquiring, managing and renting real estate assets within the Spanish market. Its business activities are divided into three segments: Shopping Centers, Offices, as well as Logistics. The Shopping Centers area is responsible for operation of a number of shopping malls, namely Txingudi, Las Huertas, Albacenter, Anec Blau, Hiper Albacenter, and Nuevo Alisal, among others. The Offices segment invests in office properties, such as Arturo Soria, Cardenal Marcelo Spinola, Egeo and Eloy Gonzalo. The Logistics division focuses on managing logistics warehouses, including Alovera I and Alovera II. The Company also owns a plot for residential properties development. It is a parent of a number of entities, such as Lar Espana Inversion Logistica SA, Gran Via Centrum Holdings SAU, Global Noctua and Puerta Maritima Ondara.
Tecnicas Reunidas is a general contractor company based in Spain. Co. engages in the engineering, design, and construction of industrial facilities for refining and petrochemical, oil and gas, power, and infrastructure and industries sectors worldwide. Co. constructs nuclear plants, conventional thermal plants, and renewable energy and cogeneration facilities for power sector; refineries and facilities for petrochemicals; water treatment, desalination, waste management, air, land, and marine transport facilities; and liquefaction, and storage facilities, as well as oil and gas fields and pipelines. Co. also provides engineering, management and operating services for industrial plants.
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