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IBERIAN DAILY 09 FEBRUARY + 4Q’20 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ARCELOR MITTAL, TÉCNICAS REUNIDAS.

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

Stock markets remain in the black
It was yet another session of gains for the European stock markets that sped up following a bullish US opening as value stocks continued to regain lost ground, while the debate on the impact from Biden’s stimulus package on inflation continues (with long-term debt yields and the slope at 12-month highs). In the US, the 4Q’20 results season remains strong, with +1.7% growth in EPS vs. -8.8% expected at the beginning of the season. Thus, within the Euro STOXX, Banks, once again, and Basic Resources stood out, vs. the losses posted by the Food and Real Estate sectors. On the macro side, in the Euro zone, February’s Sentix investor sentiment index contracted unexpectedly. Separately, the EU would follow in Australia’s footsteps, making big tech companies pay for the news they link to. In US business results, Hasbro and Global Payments beat expectations.
What we expect for today
The main European indices would trade with slight losses following the gains over the past few sessions, with the tourism sector possibly under pressure after the UK announced new Covid-19 tests for travellers entering the country (up to 3 tests in 10 days). Currently, S&P futures are unchanged (the S&P 500 closed +0.4% higher vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 21.24). Asian markets are rising (CSI 300 +1.8%, Japan +0.4%).
Today in Mexico we will learn January’s inflation data. In US business results, Twitter, Carrier Global and Fox, among others, will release their earnings. In debt auctions: Spain (€ 7 Bn in 6M & 12M T-bills and a 50Y syndicated bond), Netherlands (€ 6 Bn in bonds due 2031) and Germany (€ 1.5 Bn in bonds due 2033).