EUR 100.00 For Business Accounts Only

IBERIAN DAILY 24 JANUARY + 4Q’23 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS.

At the end of today’s report, and during the entire results season, we will include a presentation with previews for the 4Q’23 results to be released over the coming days in Spain.

The Ibex falls farther away from the 10,000-point level
Europe saw a decreasing performance, hit by the geopolitical tensions, with the Ibex leading drops once more (>-1.0%). Thus, in the STOXX 600 Basic Resources and Automobiles led gains vs. the drop of defensive sectors such as Pharma and Utilities, which were the worst performers. On the macro side, in the euro zone, January’s consumer confidence dropped more than expected. In the US, the Richmond Fed manufacturing index slowed down more than expected. In China, the Govt. would be readying a US$ 278 Bn stimulus package in view of the shutdown for the Chinese New Year celebrations. Awaiting more details, most of the package will depend on mobilising funds from state-run companies generated abroad. In Japan, the more hawkish comments made by K. Ueda (BoJ governor) showing greater confidence in inflation forecasts have led to a sharp rise in the Japanese 10Y bond (+4.2bps). In US business results, General Electric, Halliburton and Invesco beat expectations, while Procter & Gamble and Netflix came in worse than expected.
What we expect for today
European stock markets would open with slight gains, although marked by the release of the first readings of January’s PMI. Currently, S&P futures are up +0.26% (the S&P 500 ended +0.15% higher vs. the European closing bell). Asian stock markets are mixed (China’s CSI 300 +0.84%, Japan’s Nikkei -0.80%).
Today in the euro zone we will learn January’s PMI and in Mexico November’s IGAE economic activity. In US business results, Tesla, Freeport-McMoran and AT&T, among others, will release their earnings.