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IBERIAN DAILY 03 MAY + 1Q’22 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: 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 1Q’22 results to be released over the coming days in Spain.

Lockdowns in China and the rate hike take their toll
Volatility increased on European stock markets after debt curves once again rose sharply. In this regard, the Treasury hit 3%, meaning the highest level since Nov’18. In the Euro STOXX, only Household Goods rose, whereas Retail fell the least. By contrast, Autos and Media were the biggest losers on the day. As for macro data, in the euro zone April’s final manufacturing PMI improved slightly due to the rise in Germany and France, whereas the regional data in Spain and Italy fell slightly more than expected. Separately, EU energy ministers discussed joint measures to implement a gradual ban on Russian oil at the end of the year, although Hungary shows some opposition to the agreement. In the US, March’s construction spending rose quite a bit less than expected and the manufacturing ISM for April fell unexpectedly. The employment (near 50) and new orders subindex fell from its previously high level. In US business results, Moody’s in line, Mosaic and Boston better than expected.
What we expect for today
European stock markets would open with gains of around +1.0%, where Brussels will announce the sixth sanction package against Russia that would suggest gradual restrictions on crude oil and some banks. Currently, S&P futures are up +0.43% (yesterday the S&P 500 ended up +0.66% vs. the European closing bell). Volatility in the US decreased (VIX 32.40). Asian markets are closed.
Today in Germany we will learn the number of unemployed for April, in the euro zone March’s unemployment rate and in the US final durable goods orders and factory orders (both from March). In US business results, DuPont, Gartner, Hilton Worldwide, Biogen, Stee Lauder, Pfizer and Verisk Analitics, among others, will release their earnings.