EUR 100.00 For Business Accounts Only

IBERIAN DAILY 25 JANUARY + 4Q’21 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, REPSOL, SACYR, TOURISM SECTOR.

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’21 results to be released over the coming days in Spain.

MARKETS YESTERDAY AND TODAY

All eyes on Ukraine
The threat of Russia attacking Ukraine led to sharp losses on stock markets in a week also marked by macro data releases, the Fed meeting and the business results. Thus, in the Euro STOXX all sectors posted losses, led by Technology and Autos, with the best performers being defensive sectors like Telecoms and Utilities. In the euro zone, January’s PMIs showed mixed results, with the Manufacturing PMI rising unexpectedly and the Services index contracting more than expected. The impact from the Omicron variant has slowed the growth pace of business activity to 11-month lows, and despite the improvement to supply bottlenecks. In Italy, the presidential election to find a successor for S. Mattarella continues following Draghi’s failed attempt in the first vote after he was unable to obtain a large enough majority. In the US, some 8,500 soldiers have been put on alert in order to reinforce the deployment of NATO troops in Eastern Europe, whereas Russia once again denied its intention of invading Ukraine. In US business results, Halliburton beat expectations, Zions Bancorp came in below and Brown & Brown was in line.
What we expect for today
European stock markets would open more stable, although we expect a volatile session following the rising inflation in Australia, which could force the Central Bank to act. Currently, S&P futures are down -1% (the S&P 500 ended +3.32% higher vs. the European closing bell). Volatility in the US rose (VIX 29.90). Asian markets are falling (China’s CSI 300 -1.5% and Japan’s Nikkei -1.6%).
Today the IMF will update its global economic forecasts, in Germany we will learn January’s IFO, in the US January’s consumer confidence and in Mexico November’s IGAE economic activity index. In debt auctions: Netherlands (€ 2 Bn in bonds due 2052). In US business results, General Electric, Microsoft, American Express, 3M and Invesco, among others, will release their earnings.