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IBERIAN DAILY 15 APRIL + 1Q’24 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: N/A.

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 1Q’24 results to be released over the coming days in Spain.

The surprise in the US inflation data and the ECB meeting marked last week’s performance
The persistence of the US inflation and the statements made by C. Lagarde (ECB) hint at a clear divergence in monetary policy at both sides of the Atlantic. Although part of the drops came to an end last Friday, the Ibex ended last week below the 11,000-point level and the Euro STOXX50 below 5,000 points. In the STOXX 600, the best-performing sectors were Basic Resources and Energy, whereas Consumer Goods, followed by Travel & Leisure posted the biggest losses. On the macro side, in the UK, industrial output rose 1.1% in February, above expectations. In the US, March’s import prices climbed more than expected and for the third consecutive month whereas the University of Michigan consumer confidence dropped more than expected in April. In China, even though March’s M2 moderated unexpectedly, the total financing rose more than expected. On the geopolitical side, the UN called for calm following Iran’s attack of Israel with drones and missiles and the capture of an Israeli flagship in the Strait of Hormuz. In US business results, JPMorgan, Wells Fargo and BlackRock came in above expectations although Citi was practically in line.
What we expect for today
European stock markets would open with slight gains, with the energy sector acting as safe haven in view of the mounting geopolitical risks and Travel&Leisure and Airlines hit by the possibility of an extension of the conflict (IAG has limited exposure to the region compared to the rest of the sector). Currently, S&P futures are up +0.41% (the S&P 500 ended down -0.53% vs. the European closing bell). Asian stock markets are mixed (China’s CSI 300 +2.09%, Japan’s Nikkei -0.93%).
Today in the euro zone we will learn February’s industrial output and in the US the Empire manufacturing and NABH indices (April), and March’s Retail sales. In US business results, Goldman Sachs and M&T Bank will release their earnings.