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IBERIAN DAILY 20 OCTOBER + 3Q’23 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: BANKING SECTOR, ELECTRICITY SECTOR.

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.

IBEX seeks support at 9,100 points
Drops continued on both sides of the Atlantic, where caution prevailed in view of the conflict in the Middle East. In the STOXX 600, all the sectors except Technology and Consumer Goods closed with losses, led by Real Estate and Pharma. On the macro side, in the US J. Powell admitted that the political tensions and the geopolitical environment call for caution although he did not leave the door closed to a last rate rise. Weekly jobless claims fell unexpectedly to an 8-month low, and the Philadelphia Fed index recovered less than expected, with a drop in the capex heading. In Japan, September’s general and core inflation moderated in September less than expected. In China, the PBoC kept reference rates unchanged for 1Y and 5Y loans at 3.45% and 4.2%, respectively. In US business results, American Airlines and Freeport-McMoran beat expectations, Phillip Morris was in line and Blackstone came in below expectations.
What we expect for today
European stock markets would open with losses of around -0.7%, which could be reeled in throughout the session, but with better performance by defensive stocks. Currently, S&P futures are down -0.15% (the S&P 500 ended down -0.81% vs. the European closing bell). Volatility in the US rose (VIX 21.45). Asian stock markets are falling (China’s CSI 300 -0.55%, Japan’s Nikkei -0.21%).
Today there are no noteworthy macro releases. In US business results, American Express and Huntington, among others, will release their earnings.