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IBERIAN DAILY 01 FEBRUARY + 4Q’21 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, BANKING SECTOR, CAF, IAG, IBERDROLA, REPSOL.

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 4Q’21 results to be released over the coming days in Spain.

MARKETS YESTERDAY AND TODAY

Stock markets benefit from the technology rally
The US technology rally seen last Friday fuelled gains in European stock markets. Thus, in the Euro STOXX, Technology and Financial Services were the best-performing sectors whereas Energy was the only industry seeing drops (despite the rise in crude oil) with Consumer Goods ending flat. On the macroeconomic level, Spain plans to mobilise € 24.6 Bn linked to “Next Generation EU” funds in the 1H. On another note, January’s preliminary inflation moderated less than expected to 6.0% given the rise in energy and transport cost whereas the core data climbed to 2.9% unexpectedly. Similarly, in Germany, January’s preliminary inflation moderated less than expected. In the euro zone, as expected, the preliminary 4Q’21 GDP came in at 4.6% YoY although with a disappointing QoQ figure, with Germany’s -0.7% drop, France’s +0.7% and Spain’s +2% levels standing out. The EC is preparing an investment plan to produce 20% of global microchips. In the US, the Dallas Fed index fell more than expected to July’20 lows whereas Chicago PMI climbed more than expected to 65.2. From the Fed, Bostin showed his opposition to raise rates by 50bps in March, being in favour of 3 rises in 2022 whereas Daly left the door open to at least 3 rises. In Mexico, the 4Q’21 GDP grew less than expected. In US Results, Citrix and NXP Semiconductors came in above expectations and Otis in line.
What we expect for today
European stock markets would open with gains close to +1.0%, where the technology sector would continue to recover ground, in line with the performance seen in Asia and the US. Currently, S&P futures are down -0.35% (the S&P 500 ended +0.77% higher vs. the European closing bell). Volatility in the US fell (VIX 24.83). Asian markets are climbing (China’s CSI 300 is closed and Japan’s Nikkei +0.3%).
Today in Germany we will learn January’s unemployment, in the euro zone January’s final manufacturing PMIs and in the US January’s manufacturing ISM. In US business results: General Motors, Alphabet (Google), Starbucks, Electronics Arts, PayPal, Exxon Mobil and Stanley Black&Decker, among others, will release their earnings. Debt auctions: Germany (€ 6 Bn in bonds due 2024).

COMPANY NEWS
BANKING SECTOR
This morning Ibercaja confirmed through a communiqué it cancels its IPO given the current market volatility due to the geopolitical uncertainty. The suspension of its IPO means that Ibercaja will have to wait for the approval of 2021 audited accounts to resume its listing attempt, as according to the regulation an IPO must be based on audited accounts not older than six months. We believe that Ibercaja will speed up its audit report and approval of 2021 accounts to be able to conduct the IPO in the 2Q’21.