IBERIAN DAILY 09 JULY (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: CAIXABANK, CELLNEX, ENDESA, IBERDROLA, LIBERBANK, MELIÁ HOTELS, OHL, REPSOL, TOURISM SECTOR.MARKETS YESTERDAY AND TODAY
Risk aversion
It was a session of risk aversion, with sharp drops on both sides of the Atlantic, where fears of the effects the Delta variant could produce (Japan extended the state of emergency ahead of the Olympic Games and suspended public in events, whereas Fed members warned that the Delta variant may hinder recovery), the news on Chinese tech firms and even a premature withdrawal of Fed stimulus measures led to one of the biggest drops this year, around -2% on most European stock markets. Thus, in the Euro STOXX all the sectors closed in the red, with Real Estate and Pharma the best relative performers vs. the biggest drops in Retail and Travel & Leisure. On the macro side, weekly jobless claims in the US rose more than expected. In the Euro zone, the ECB confirmed its shift towards a symmetric inflation target of ~2.0%, which would allow for inflation to stand above the target without the need to raise interest rates. As for incorporating the cost of housing in prices, the institution warned that it is a long-term project. In Brazil, June’s YoY inflation rose less than expected, and in Mexico it remained at the same level as in May, as expected. In China, June’s inflation slowed unexpectedly, whereas production prices came in as expected, confirming that highs were hit in May.
What we expect for today
The European stock markets would rally following yesterday’s drops, with slight increases, and with the ES50 standing at psychological levels of 4,000 points. Currently, S&P futures are down -0.1% (the S&P 500 ended practically unchanged vs. its price at the closing bell in Europe). Volatility rose in the US (19). Asian markets are sliding (China’s CSI -0.5% and Japan’s Nikkei -0.6%).
Today there are no relevant macro releases. In debt auctions: Italy (€ 6 Bn in 12M t-bills).
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.
Endesa is engaged in the production, transmission, distribution, and supply of electricity, through hydroelectric, fossil fuel, and nuclear generation. Co. is also engaged in the mining of coal for use in its fossil-fuel electric plants; mining research; land restoration, and environmental monitoring and control.
Melia Hotels International is the parent company of a group engaged in the acquisition, management and operation of hotels. Co. operates its hotel network in Germany, Argentina, Brazil, Bulgaria, Cabo Verde, Chile, China, Costa Rica, Croatia, Cuba, Egypt, Spain, United States, France, Greece, Netherlands, Indonesia, Italy, Luxembourg, Malaysia, Mexico, Panama, Peru, Portugal, Puerto Rico, United Kingdom, Dominican Republic, Singapore, Switzerland, Tunisia, Uruguay, Venezuela and Vietnam under the followings brandnames: Paradisus Resorts®, Melia Hotels & Resorts®, TRYP Hoteles® and Sol Hotels & Resorts®.
Obrascon Huarte Lain is an international concession and construction groups based in Spain. Co. maintains significant operations in 30 countries across all five continents. Co. is engaged in hospital and railway construction, transport infrastructure concessions, oil and gas, energy, solids handling and fire protection systems and international contracts. Co.'s operations are organized along four divisions: OHL Concesiones, OHL Construccion, OHL Industrial y OHL Desarrollos. Co. is also engaged in real state project developments of mixed use managed by the international hotel chains.
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