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IBERIAN DAILY 22 OCTOBER + 3Q’21 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: BBVA, CAIXABANK, ELECTRICITY SECTOR, PROSEGUR, PROSEGUR CASH.

MARKETS YESTERDAY AND TODAY

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

Market doubts
European stock markets saw a slight profit taking, with investors paying closer attention to the announcement of companies on supply chain problems. In the Euro STOXX, Personal Consumption and Automobiles were the best-performing sectors while Basic Resources and Energy (following the drop in crude oil) ended with the biggest drops. On the macroeconomic level, in the euro zone, October’s consumer confidence deteriorated slightly less than expected. In the US, weekly jobless claims fell slightly more than expected, October’s Philadelphia Fed index slid more than expected and September’s existing home sales rallied more than expected. Separately, the US has abandoned its threat to impose new tariffs on 5 European countries (among them Spain) after reaching an agreement on the digital tax that should be ratified by the US Congress. The European Council was unable to reach an agreement on the energy issue, and put off the debate until the end of the year. In Brazil, J. Bolsonaro’s administration would be considering exceeding the spending ceiling, which led to strong widening in debt markets. In Turkey, the Central Bank cut interest rates more than expected. In China, Evergrande would have issued the coupon payment before the grace period expires. In Japan, September’s inflation climbed above expectations, as did October’s preliminary manufacturing PMI. In US Results, A&T and KeyCorp Express beat expectations, Snap-On was in line and American Airlines released disappointing figures, whereas several technology companies cut their guidance due to the supply issues.
What we expect for today
European stock markets would return to positive territory with rises of as much as +0.5%, with a better performance of value. Currently, S&P futures are down -0.13% (the S&P 500 ended up +0.37% vs. its price at the closing bell in Europe). Volatility in the US dropped (VIX 15.01). Asian markets are rising (China’s CSI 300 +0.78% and Japan’s Nikkei +0.37%).
Today in the euro zone and the UK we will learn October’s preliminary manufacturing and services PMI. In US business results, VF, Seagate and American Express, among others, will release their earnings.

COMPANY NEWS

3Q’21 Results highlights and rest of previews
Of the stocks releasing their earnings next week on the positive side we highlight Mapfre (29/10), where we expect a strong underlying performance with sustained improvement vs. the 1H’21 (despite a significant impact from catastrophes in 3Q’21). Moreover, we expect the company to confirm once again its commitment to a stable and growing dividend, where we see no risk of a cut (>7% yield).