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IBERIAN DAILY 27 OCTOBER + 3Q’23 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, CAIXABANK, FERROVIAL.

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 3Q’23 results to be released over the coming days in Spain.

ECB halts rate hikes
Yesterday’s session was marked by the ECB’s speech that kept benchmark rates unchanged, as expected, whereas C. Lagarde conveyed a more cautious message due to the uncertainty surrounding the geopolitical front, which eased drops in stock markets. Thus, in the STOXX 600, Chemicals and Real Estate led gains, whereas Travel&Leisure and Retail saw the biggest drops. On the macro side, in Spain, the unemployment rate climbed unexpectedly in the 3Q’23 due to the increase in working population. In the US, the 3Q’32 GDP grew above expectations (4.9% q/qa) with strong growth in private consumption (4.0% q/qa) and public spending. On another note, weekly jobless claims rose unexpectedly, September’s core capital goods orders rose much more than expected and September’s pending home sales climbed unexpectedly. In Turkey, the Central Bank raised reference rates by +500bps to 35% (repo rate), still far below inflation. In Japan, Tokyo inflation rose more than expected in October. In US 3Q’23 Results, Merck, American Tower, Comcast, Amazon.com and Intel beat expectations.
What we expect for today
European stock markets would recover at the end of the week, with gains of around +1.0%. Currently, S&P futures are up +0.63% (the S&P 500 ended -0.49% lower vs. the European closing bell). Volatility in the US rose (VIX 20.68). Asian stock markets are climbing (China’s CSI 300 +1.04%, Japan’s Nikkei +1.26%).
Today in Spain we will learn the first reading of 3Q’23 GDP and in the US September’s personal income and outlays. In US business results, Exxon Mobil, Chevron, Colgate, Phillips 66 and Fortis, among others, will release their earnings.


COMPANY NEWS

CAIXABANK. 3Q’23 results beating expectations and guidance improved. BUY
The company has obtained € 1.52 Bn of Net Profit, around +11% vs. the consensus due to NII (+12% vs. 2Q’22; +9% vs. consensus) and higher revenues from insurance (+27% vs. 3Q’23). Revenues rose +40% YoY (+8% vs. consensus), costs +7% (in line) and Operating Income +71%. Credit quality remained stable, with CoR at 30bps (25bps in 9M’23 vs. guidance’23