IBERIAN DAILY 11 JUNE (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACS, FLUIDRA, MELIÁ HOTELS, OHL, TÉCNICAS REUNIDAS.MARKETS YESTERDAY AND TODAY
The ECB calms the markets
Most European stock markets fell slightly through the session before ending mixed after the ECB’s meeting, which kept the monetary policy unchanged but raised its growth and inflation forecasts for 2020 and 2021. The institution also announced that the PEPP purchases will continue, even at a faster pace than in 1Q’21. Thus, within the Euro STOXX almost all sectors ended in the red, with Travel & Leisure and Retail being the worst performers vs. Pharma and Technology, which were the best-performing sectors. On the macro side, in the US, inflation climbed above expectations in May, with general inflation going from 4.2% to 5.0% YoY (vs. 4.7% expected) and core inflation from 3.0% to 3.8% (3.4% expected), with no significant impact on the market. Negotiations between the Democrats and the Republicans on the infrastructure package are apparently close to an agreement with US$ 1.2 Bn Trillion spending over the coming 8 years. On the international agenda, good signs between the US and the UK for the G-7 meeting, with J. Biden being closer to B. Johnson’s Brexit positions. In China, the parliament approved a law to offset the sanctions imposed by foreign governments to Chinese companies (banning to meet sanctions), which would suggest a new escalation in the legal war with Europe and the US.
What we expect for today
European stock exchanges would open with slight gains, awaiting news on the G-7 meeting and the implementation of a minimum global tax. The news that the US eases sanctions to Iran could weigh on Brent crude (higher probability of a nuclear agreement in the summer). Currently, S&P futures are up +0.1% (the S&P 500 ended down -0.11% vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 16.10). Asian markets are falling (China’s CSI -0.8% and Japan’s Nikkei -0.1%).
Today we will learn in Spain May’s final and core inflation. In ratings: Fitch will revise Spain’s (A-, stable).
COMPANY NEWS
CHANGES IBEX 35. No changes, as expected.
The IBEX Technical Advisory Committee met yesterday and, as we expected, made no changes in its first ordinary meeting of the year (the next one will be held in September; the follow-up and control meetings are in March and September). It did announce changes in weighting: Acciona goes from 60% to 80%, Caixabank from 80% to 100%, Cellnex from 80% to 100% and Fluidra from 60% to 80%. These changes will be effective from 21 June (included as of 18 June).
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.
Fluidra is engaged in the manufacture and commercialization of accessories and specific products for swimming pools, irrigation, and water treatment and purification systems.
Melia Hotels International is the parent company of a group engaged in the acquisition, management and operation of hotels. Co. operates its hotel network in Germany, Argentina, Brazil, Bulgaria, Cabo Verde, Chile, China, Costa Rica, Croatia, Cuba, Egypt, Spain, United States, France, Greece, Netherlands, Indonesia, Italy, Luxembourg, Malaysia, Mexico, Panama, Peru, Portugal, Puerto Rico, United Kingdom, Dominican Republic, Singapore, Switzerland, Tunisia, Uruguay, Venezuela and Vietnam under the followings brandnames: Paradisus Resorts®, Melia Hotels & Resorts®, TRYP Hoteles® and Sol Hotels & Resorts®.
Obrascon Huarte Lain is an international concession and construction groups based in Spain. Co. maintains significant operations in 30 countries across all five continents. Co. is engaged in hospital and railway construction, transport infrastructure concessions, oil and gas, energy, solids handling and fire protection systems and international contracts. Co.'s operations are organized along four divisions: OHL Concesiones, OHL Construccion, OHL Industrial y OHL Desarrollos. Co. is also engaged in real state project developments of mixed use managed by the international hotel chains.
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.
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.