IBERIAN DAILY 26 MAY (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: CAIXABANK, CELLNEX, FLUIDRA, TALGO.Uncertainty rises, but AI boosts tech stocks
Sell-offs continued on European stock markets in another session lacking advances in the talks on the US debt ceiling, and with pressure rising after Fitch put the country on rating watch negative. Thus, in the Euro STOXX, almost all the sectors ended in the red, led by Energy and Media, with the best positive performance coming from Technology and Consumer Goods. On the macro side, in Germany the final 1Q’23 GDP confirmed the technical recession, showing -0.3% growth. In France, May’s business confidence fell below its historical average, dragged down by the manufacturing, construction and services sector. In the US, the 1Q’23 GDP was raised thanks to private consumption, whereas business profits saw a bigger quarterly contraction. Weekly jobless claims came in below expectations and pending home sales were disappointing, stagnating in April. Nothing definitive regarding the debt ceiling, but an agreement is being considered to raise it for the next 2 years, limiting discretional spending but allowing a 3.0% increase in defense spending. Separately, the flow towards monetary funds in May would have been the second highest (after last March) since Apr’20, and these funds would accumulate around US$ 5.4 Tn vs. US$ 4.8 Tn at the beginning of the year. In Japan, Tokyo inflation fell in May more than expected to 3.2% YoY from the previous 3.5%, but the core figure rose.
What we expect for today
European stock markets would open flat with a slight bullish slant. Currently, S&P futures are down -0.19% (the S&P 500 ended +0.49% higher vs. the European closing bell). Volatility in the US fell (VIX 19.14). Asian stock markets are mixed (China’s CSI 300 -0.14%, Japan’s Nikkei +0.78%).
Today in the US we will learn durable goods orders, personal outlays and wholesale inventories for April and in Mexico March’s IGAE economic activity index.
Caixabank is an investment company based in Spain. Co. is involved in investment portfolio management activities across two areas: Services and Financial Business and Insurance. In the services area, Co. provides investment solutions for companies involved in the infrastructure, energy, services and entertainment sectors. In the financial business and insurance area, Co. is engaged in the investments for international banks, insurance and specialist financial services. Co. focuses most of its banking investments in India, China, the U.S., and Central and Eastern Europe with a particular interest in retail banking. Co. is also involved in the disinvestments activities.
Cellnex Telecom SA is a Spain-based company engaged in the wireless telecommunications (telecom) business. Its activities are divided into three segments: Broadcasting infrastructure, Telecom site rental, as well as Network services and other. The Broadcasting infrastructure division comprises distribution and transmission of television (TV) and frequency modulation (FM) radio signals, operation and maintenance (O&M) of radio broadcasting network, as well as over-the-top (OTT) radio services, among others. The Telecom site rental division provides access to wireless infrastructure, primarily through infrastructure hosting and telecom equipment co-location, mainly for mobile network operators and other wireless and broadband telecom network operators. The Network services and other division offers connectivity services for a variety of telecom operators and radio communication, among others. The Company also develops 5th generation mobile networks (5G) through Alticom BV.
Fluidra is engaged in the manufacture and commercialization of accessories and specific products for swimming pools, irrigation, and water treatment and purification systems.
Talgo is engaged in designing, manufacturing, repairing and maintaining the railway rolling stock, as well as the manufacturing, assembling, repairing and maintaining the engines, machinery and parts of the railway systems. Co. has an industrial presence in seven countries: Spain, Germany, Kazakhstan, Uzbekistan, Russia, Saudi Arabia and U.S.A. Co. has an active fleet in Europe, Asia and North America that comprises of 94 high-speed trains and more than 1,400 Talgo tilting passenger cars. Also, Co. purchases, redesigns, constructs, leases and sells all types of real estate.
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