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IBERIAN DAILY 06 NOVEMBER + 3Q’24 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACCIONA ENERGÍA, SANTANDER.

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

Trump wins the elections
Awaiting the official results, all indications suggest that Donald Trump would have won the US presidential election (248 of 270 necessary electoral votes), where four of the so-called swing states would have tipped the balance in his favour, and with a strong likelihood that the Republicans will also take both houses of Congress. Europe’s session yesterday saw an increasing performance, with most indices ending with slight corrections. In the STOXX 600, Media and Industrials saw the biggest gains vs. Pharma and Automobiles that were the worst performers. On the macro side, in Spain, the number of unemployed rose less than expected in October and the number of employed rose above 21.3 M, a record high. In the US, October’s services ISM climbed unexpectedly to Dec’22 highs, with the price sub-index moderating but remaining at high levels. September’s trade deficit widened more than expected in view of the sharp rise in imports. In US business results, DuPont and Gartner beat expectations and Yum! came in below expectations.
What we expect for today
Stock markets would open with moderate gains although with significant sector dispersion, with bond proxies seeing a negative market reaction due to the hike in interest rates and Automobiles, Food and Technology hit by the risk of a trade war. On the positive side, Financials, Industrial and Retail stand out thanks to the dollar’s appreciation. Media, Travel&Leisure, Insurance and Household are not affected by the result and could see a positive performance. Among the Spanish companies with higher exposure to the US we stress Acerinox, Grifols, ACS, Fluidra, Puig and Ferrovial. Currently, S&P futures are up +1.5% (the S&P 500 ended +0.2% higher vs. the European closing bell). Asian markets are climbing (China’s CSI 300 +0.13%, Japan’s Nikkei +2.5%).
Today in Europe we will learn October’s final services PMI and in Brazil the Selic interest rate meeting. In US business results, Gilead, Willian Cos and Marathon Oil, among others, will release their earnings.