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IBERIAN DAILY 22 JANUARY + 4Q’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 4Q’24 results to be released over the coming days in Spain.

Trump shakes stock markets
European stock markets were mixed, where the CAC continued to recover whereas the peripheral segment reported slight corrections but already seeing the direct and indirect impact from D. Trump’s initial decisions (possible tariffs to Mexico and Canada, boosting fossil fuels vs. green energies). In the STOXX 600, Consumer Goods and Pharma led gains vs. Basic Resources and Autos (hit by tariffs to Mexico) that were the worst performers. On the macro side, in Germany, the expectations ZEW index dropped more than expected in January although the current situation index improved unexpectedly. In Davos, new ECB members (Villeroy, Kazimir) bet on further rate cuts in the upcoming meetings (the next one will be held next week). In the US, D. Trump continues to study an initial 10% tariff for China and he announced the Stargate programme to bolster AI infrastructures with a private allocation of US$ 500 Bn. Additionally, he insisted on defence spending of 5.0% of GDP for NATO members. The latest BoFA survey showed optimism about US securities and the dollar, being bearish in the rest of assets, including the greater underweighting of bonds since the 22nd of October. In Mexico, November’s retail sales fell more than expected. In US business results, Dr Horton, Netflix (in subscriptions) and Prologis beat expectations, KeyCorp came in worse than expected.
What we expect for today
Stock markets would open with gains of up to +0.3%. Currently, S&P futures are up +0.25% (the S&P 500 ended up +0.20% vs. the European closing bell). Asian markets are mixed (China’s CSI 300 -1.0% and Japan’s Nikkei +1.60%).
Today in the US we will learn December’s leading indicator. Third day of Davos Economic Forum. In US business results, Procter&Gamble, United Airlines, State Street, Abbot and Haliburton, among others, will release their earnings.