Report
Research Department
EUR 100.00 For Business Accounts Only

IBERIAN DAILY 24 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, EUSKALTEL, GRUPO CATALANA OCCIDENTE, IBERDROLA, OHL.

MARKETS YESTERDAY AND TODAY

Stock markets unaffected by the good macro data
The European stock markets were unaffected by the good macro data and the slightly bullish US opening, posting generalised losses that exceeded -1% in the case of the Dax or the Ibex. Thus, within the Euro STOXX, all sectors except Food and Basic Resources closed in the red, with Retail and Utilities being the worst relative performers. On the macro side, in the Euro zone, the manufacturing PMI was unchanged vs. May's levels (above expectations), having remained in growth area for 12 consecutive months. The services PMI climbed to 58, as expected. In the United Kingdom, the Services PMI contracted more than expected, whereas the manufacturing PMI increased slightly (above expectations). May's new home sales contracted unexpectedly. Separately, the Republicans and Democrats seem to be in agreement on a US$ 1 Tn infrastructure plan, while several members of the Fed warned that there will begin to be talk of tapering in 2-3 months. Lastly, the CDC found a probable link between Covid-19 vaccines based on mRNA and heart inflammation, whereas Merkel demands an obligatory quarantine for UK travellers entering the EU.
What we expect for today
European stock markets would open with slight losses. Currently, S&P futures are up +0.2% (the S&P 500 ended -0.18% lower vs. its price at the closing bell in Europe). Volatility in the US decreased (VIX 16.32). Asian markets are falling (China's CSI -0.2% and Japan's Nikkei -0.1%).
Today in the Euro zone, the ECB will release its economic bulletin. Also we will learn in Germany June's IFO, in Spain the final 1Q'21 GDP. In the UK, the BoE will hold its meeting. We will also learn in the US May's durable goods orders and weekly jobless claims. In debt auctions: Italy (€ 3 Bn in bonds due 2022 and I/L due 2030).
Underlyings
Actividades de Construccion y Servicios SA

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.

Euskaltel SA

Euskaltel SA is a Spain-based company engaged in the provision of integrated telecommunication services. The Company's activities are divided into three segments: Residential, Business, as well as Wholesale and Other. The Residential segment provides fixed and mobile telecommunication services, broadband and wireless Internet, as well as digital television (TV) as a single service and in packages. The Business division primarily offers fixed and mobile telephony, as well as Internet access for enterprises. The Wholesale and Other area serves wholesale customers and is responsible for the delivery of communication services, such as infrastructure leasing, information technology (IT) outsourcing, as well as sell of installation material and electronics. The Company operates in the Basque Country, Spain.

Grupo Catalana Occidente S.A.

Grupo Catalana Occidente is an insurance group based in Spain. Co. is engaged in insurance and reinsurance activities, including commercial, life, disability, and automobile insurance. Co. is also engaged in the sale of annuities and pension funds. Co.'s operations are organized along two businesses: Traditional business (insurance) and Credit Insurance business. Co.'s main markets are located in Spain, Germany, United Kingdom, France and the Netherlands. Co. maintains a presence in more than 40 countries.

Iberdrola SA

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.

Obrascon Huarte Lain SA

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.

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