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IBERIAN DAILY 07 FEBRUARY + 4Q’22 RESULTS. HIGHLIGHTS AND PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, CAF, REPSOL.

The week started with losses
Stock markets fell on both sides of the Atlantic in a week with few macroeconomic references, lagged down by fears on further monetary tightening and amid increased geopolitical tension between the US and China over the Chinese spy balloon. Thus, within the Euro STOXX, all sectors fell except for Household Goods and Pharma, with Technology and Retail being the worst relative performers. On the macro side, in the euro zone, the Sentix investment sentiment index improved more than expected in February for the fourth consecutive month, this being the best reading since March 2022. In Germany, factory orders increased more than expected in December. In the US, Fed member R. Bostic warned that the latest employment data would suggest a terminal rate for the Fed above 5.25%. In Japan, December’s household spending fell more than expected, whereas salaries saw their biggest annual jump since 1997. In US business results, Tyson Foods came in worse, and ON Semiconductor better.
What we expect for today
European stock markets would open with slight gains of +0.2%. Currently, S&P futures are up +0.2% (the S&P 500 ended unchanged vs. the European closing bell). Volatility in the US rose (VIX 19.43). Asian markets are falling (China’s CSI 300 -0.12% and Japan’s Nikkei -0.10%).
Today we will learn in Spain and Germany December’s industrial output, and in the US December’s trade balance. In debt auctions: Spain (€ 6 Bn in 6M & 12M T-bills). In US business results, Dupont, Linde and Royal Caribbean, among others, will release their earnings.