EUR 100.00 For Business Accounts Only

IBERIAN DAILY 15 FEBRUARY + 4Q’20 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, NH HOTELES.

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

European stock markets rally at the end of the week... but the IBEX is the biggest loser
After breaking through support levels, the European stock markets managed to end in the black (save for Portugal), underpinned once again by a good performance by the US, although the worst performer on the week was the IBEX (-2%). On Friday, in the Euro STOXX, Technology and Media were the best relative performers (with rises higher than +1%) vs. the larger drops in Construction and Autos. On the week the performance was similar. On the macro side, in Spain, January’s inflation data was lowered slightly, whereas core inflation increased significantly to 0.6% YoY vs. 0.1% previously. Separately, the Socialist Party won the Catalan election, but secessionist parties obtained the majority to govern. In the United Kingdom, the 4Q’20 GDP doubled expectations. In the US, the University of Michigan consumer confidence index fell unexpectedly in February. In Japan, the 4Q’20 GDP grew far above expectations. In US business results, Moody’s came in slightly below expectations, Dominion Energy in line and Newell came in better than expected.
What we expect for today
European stock markets would open with gains of more than +0.5% in search of support levels, with value performing well in view of the rise in interest rates and Brent prices. Italian markets could see slightly more volatility after Draghi’s naming as PM over the weekend. We would also see movement among Travel & Leisure sector companies in view of the EU doubts on the recovery of tourism, not for Easter weekend but even for the summer (risk of the vaccination target being pushed back to September). Currently, S&P futures are up +0.4% (the S&P 500 closed up +0.32% vs. its price at the closing bell in Europe). Volatility in the US decreased (VIX 19.97). Asian markets are rising (CSI 300 closed, Japan +1.9%).
Today in the Euro zone, the Eurogroup will hold its meeting. Also we will learn December’s industrial output data. In debt auctions, Netherlands (€ 3 Bn in 3M & 6M T-bills), Germany (€ 6 Bn in 6M & 12M T-bills) and France (€ 6.6 Bn in 3M, 6M & 12M T-bills). In US business results, BHP Billiton and Libertur Global, among others, will release their earnings.