IBERIAN DAILY 04 OCTOBER (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACS, CAF, ELECTRICITY SECTOR, SACYR, TÉCNICAS REUNIDAS.MARKETS YESTERDAY AND TODAY
Last quarter of the year kicks off with losses
The European stock markets closed in the red on Friday, aggravating the week’s losses (of around -3.0%), driven by inflationary tensions, the US debt ceiling and technical levels. Thus, most sectors within the Euro STOXX closed the week with losses, led by Technology (more than -9%) and Industrials vs. the best relative performance of Energy and Banks. On the macro side, in the Euro zone, September’s inflation climbed above expectations to 3.4% YoY, whereas September’s manufacturing PMI was lowered slightly, while in Spain it contracted less than expected. In the US, September’s ISM manufacturing index rose above expectations, while vehicle sales fell more than expected in September. Lastly, the Democrats remain unable to reach an agreement on the size of the social fiscal plan and Biden now proposes a plan of around US$ 2 Tn (vs. the initial US$ 3.5 Tn) and that it be approved along with the infrastructure plan (already agreed with the Republicans).
What we expect for today
European stock markets would open with gains of +0.5%, with oil companies and financials performing well in another session that looks to be volatile. Currently, S&P futures are down -0.2% (the S&P 500 ended up +0.77% vs. its price at the closing bell in Europe). Volatility in the US decreased (VIX 21.15). Asian markets are falling (China’s CSI closed and Japan’s Nikkei -1%), dragged down by doubts surrounding Evergrande.
Today in the Euro zone, the Eurogroup will hold its meeting. Also we will learn October’s Sentix investor confidence index, in Spain the number of unemployed in September, in the US August’s factory orders, and in Mexico, September’s consumer confidence. In debt auctions: Germany (€ 6 Bn in 3M and 9M T-bills) and France (€ 5.4 Bn in 3M, 6M and 12M T-bills).
ACS Actividades de Construccion y Servicios is a holding company. Through its subsidiaries, Co.'s activities are divided into the following areas: Construction, engaged in the construction of civil works, and residential and non-residential building construction; industrial services, engaged in the development of applied engineering services, installations and the maintenance of industrial infrastructures in the energy, communications and control systems sectors; services, groups together environmental services, the outsourcing of building maintenance services, logistics and transport services; and concessions, mainly engaged in transport infrastructure concessions.
Sacyr is the parent company of a group engaged in the acquisition, development and construction of urban properties for their subsequent rental or resale. Co. primarily leases and sells office buildings and complexes, housing units, and shopping centers. Co. is also engaged in the operation of urban car parking facilities. Co. offers services related to the real estate industry such as technical assistance in energy savings, inventory management, architectural design, telecommunications management, property maintenance, as well as gardening and landscaping. Co. also provides consulting services in the real estate fund management sector.
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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