IBERIAN DAILY 13 APRIL (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ACS, IBERDROLA, NATURGY.US Inflation skyrockets in March
Although inflation in the US climbed somewhat more than expected in March (to 40-year highs of 8.5%) and core inflation came in below expectations. Initially, this hich led to drops in sovereign bond yields that were reverted over the session. Despite ending up falling, the S&P500 saw a bullish opening, easing the losses in Europe. The Russia-Ukraine negotiations ended without progress, with V. Putin accusing Ukraine of not complying with the Istanbul agreements. Thus, within the Euro STOXX, Technology and Consumer Goods were the best relative performers, vs. the bigger drops in Pharma and Household Goods. In Spain, the 12-M Euribor rate entered positive territory for the first time since 2016. In Germany, April’s ZEW confidence index fell more than expected due mainly to the expectations component. In the United Kingdom, February’s ILO unemployment rate slowed, as expected. The WTO cut its global growth forecast for this year to 2.8% (vs. 4.1% previously and vs. 5.7% in 2021) and to 3.0% for merchandise trade (vs. 4.7% previously and vs. 9.8% in 2021). In US 1Q’22 business results, the results season kicks off today with the release of earnings by JP. Morgan, BlackRock, Delta Airlines and First Republic Bank.
What we expect for today
The European stock markets would open with slight gains after yesterday’s drops in most global stock exchanges. Currently, S&P futures are up +0.5% (yesterday the S&P 500 ended -0.7% lower vs. the European closing bell). Volatility in the US increased (VIX 24.26). Asian markets are mixed (China’s CSI 300 -0.25%, and Japan’s Nikkei +1.7%).
Today we will learn in the Euro zone February’s industrial output, in Spain and the UK March’s inflation and in the US March’s production prices. In debt auctions: Germany (€ 4 Bn in bonds due 2032), Italy (€ 8 Bn in bonds due 2025, 2029, 2040 and 2052).
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.
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.
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