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IBERIAN DAILY 12 FEBRUARY + 4Q’20 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, BBVA, FERROVIAL, GRIFOLS, SIEMENS GAMESA.

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 4Q’20 results to be released over the coming days in Spain.

MARKETS YESTERDAY AND TODAY

US tows Europe
If the US dragged down Europe in the previous session, the European stock markets soared yesterday fuelled by the bullish US opening after Powell’s dovish speech and the San Francisco Fed President’s comments, and aided by the slight fall in weekly jobless claims. Thus, within the Euro STOXX, most sectors ended in the black, with Technology and Construction being the best relative performers vs. the larger drops in Real Estate and Banks. On the macro side, Brussels revised its 2021/22 GDP forecasts for Spain to 5.6%/5.3% from 5.4%/4.8% previously, the revision for the EU is even higher, now forecasting a 3.9% GDP’22 vs. 3% previously. In Italy, as the market has been pricing in, M. Draghi also obtained support from 5SM and will be the new PM. In the US, Congress will vote on Biden’s fiscal package on 22 February and the CBO raised the forecast fiscal deficit in 2021 to US$ 2.26 Tn (>10% of GDP) without including the fiscal package. In Mexico, the Bank of Mexico cut the reference interest rate, as expected, by -25bps to 4.0%. In US business results, Pepsico, Walt Disney, Tyson Foods and Heinz came in better than expected, Kellogg’s worse.
What we expect for today
European indices would open flat, consolidating levels before hitting resistance levels. Currently, S&P futures are down -0.2% (the S&P 500 closed practically unchanged vs. its price at the closing bell in Europe). Volatility in the US decreased (VIX 21.25). Asian markets are falling (CSI 300 closed, Japan -0.14%).
Today, we will learn in Spain January’s final and core inflation data, in the UK the 4Q’20 GDP data, in Brazil the Economic Activity Index and in the US the University of Michigan Consumer Confidence index. In US business results, Moody’s, Dominion Energy and Newell Brands, among others, will release their earnings.