IBERIAN DAILY 10 JULY (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACS, GRUPO C. OCCIDENTE, IBERDROLA, SACYR.Fears of further monetary tightening punish the markets
Fears of further monetary tightening following the Fed’s meeting minutes and the strong US macro data led to higher volatility on the week, bringing widespread losses on stock markets. The Euro STOXX 50 ended the week down more than -3.5%, as did the Dax and IBEX 35. The best-performing sectors in the Euro STOXX were Real Estate and Food (although with losses), whereas Travel & Leisure and Consumer Goods ended with the worst relative performance on the week (near -5.0%). On the macro side, in Germany industrial output fell unexpectedly (-0.2%). In the US, non-farm job creation was disappointing, bearing in mind the private employment figure from the previous session (208,000 vs. 225,000 expected and 306,000 previously), with the unemployment rate falling -0.1% to 3.6% (as expected) and salary gains rising more than expected. In China, the annual rise in inflation moderated more than expected whereas the slowdown in production prices aggravated more than expected.
What we expect for today
European stock markets would open with drops of around -0.5%, with the worse performance of growth that would gradually improve throughout the session. Currently, S&P futures are down -0.18% (the S&P 500 was down -0.44% vs. the European closing bell). Volatility in the US fell (VIX 14.83). Asian stock markets are mixed (China’s CSI 300 +0.46%, Japan’s Nikkei -0.13%).
Today in the euro zone we will learn July’s SENTIX investor confidence index and in the US May’s final wholesale inventories. In debt auctions: Germany (€ 5 Bn in 6M 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.
Grupo Catalana Occidente is an insurance group based in Spain. Co. is engaged in insurance and reinsurance activities, including commercial, life, disability, and automobile insurance. Co. is also engaged in the sale of annuities and pension funds. Co.'s operations are organized along two businesses: Traditional business (insurance) and Credit Insurance business. Co.'s main markets are located in Spain, Germany, United Kingdom, France and the Netherlands. Co. maintains a presence in more than 40 countries.
Iberdrola is a holding company. Through its subsidiaries, Co. operates in four segments: network business, which includes all the energy transmission and distribution activities, and other regulated activity originated in Spain, the U.K., the U.S. and Brazil; deregulated business, which includes electricity generation and sales businesses as well as gas trading and storage businesses carried on by Co. in Spain, Portugal, the U.K. and North America; renewable business, with activities related to renewable energies in Spain, the U.K., the U.S. and the rest of the world; and other businesses, including the engineering and construction businesses and the non-power businesses.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.