IBERIAN DAILY 25 MARCH (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: CELLNEX, FCC.MARKETS YESTERDAY AND TODAY
PMIs and the US fuel stock markets
The European stock markets rose as the session progressed following the good PMIs data and a bullish opening in the US, where the 10Y remained stable and value beat growth slightly. Thus, within the Euro STOXX, Basic Resources and Construction were the best relative performers vs. Autos and Retail, which saw the biggest drops. On the macro side, in the Euro zone, March’s PMIs climbed above expectations (the manufacturing PMI hit 62.4, increasing for 8 consecutive months, whereas the services PMI did not improve enough to escape contraction territory), which hints at slightly positive growth in 1Q’21. Germany went back on the new restrictions for Easter Weekend that were to halt all economic activity. As for restrictions on movement, additional measures on tourism are, indeed, being debated. In the US, February’s durable goods orders showed the effect from the snow storm, falling more than expected after having risen for 9 months in a row. Meanwhile, the manufacturing and services PMIs remained largely unchanged in March at levels of ~60. In her speech before the US Senate, J. Yellen spoke in favour of lifting the restrictions on dividend payments and share buybacks in the banking sector.
What we expect for today
We expect a mixed opening in the main European indices although with some bias in favour of cyclical stocks. Currently, S&P futures are up +0.23% (the S&P 500 ended -1% lower vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 21.20). Asian markets are trading with mixed results (CSI 300 -0.15%, Japan +1.2%).
Today in the Euro zone, the ECB will release its economic bulletin. Also we will learn in the US the third reading of the 4Q’20 GDP, in Mexico, February’s retail sales and in Brazil March’s inflation data. In debt auctions: Italy (€ 5.25 Bn in bonds due 2022 and inflation-linked bonds due 2030).
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.
Fomento de Construcciones y Contratas is the parent company of a group engaged in sanitation services, cleaning, maintaining, purification and distribution of water, construction of highways, hydraulic works, marine works, air and rail transport infrastructure, urban developments, housing, non-residential buildings, office buildings, toll highways, parking garages, marinas and water treatment plants. Co. is also engaged in the manufacture and sale of cement and cement infrastructures, such as precast concrete elements; and in the financial markets, and real estate development, leasing and tourism.
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