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IBERIAN DAILY 31 JANUARY + 4Q’21 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: LOGISTA, REPSOL, TÉCNICAS REUNIDAS.

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 4Q’21 results to be released over the coming days in Spain.

MARKETS YESTERDAY AND TODAY

Last week was marked by the Fed’s more aggressive stance
The weekly performance of stock markets was marked by the Fed’s more aggressive message and by the geopolitical risk in Ukraine. With this in mind, European bourses ended with a negative performance, with the peripheral segment outperforming core markets and with the Ibex35 ending the week with drops close to -1% whereas the Dax and Euro STOXX50 ended with drops of almost -2%. In the Euro STOXX, Real Estate and Energy were the best-performing sectors last week, whereas Technology (with the sharpest monthly drop in 13 years) and Basic Resources saw the worst relative performance. In Germany, the 4Q’22 slowed down more than expected, while in Spain it grew more than expected. In the euro zone, January’s economic sentiment index dropped more than expected. In the US (mixed data), December’s personal income rose less than expected whereas outlays fell in line with expectations. In China, January’s manufacturing and services PMIs contracted in line with expectations, whereas the Caixin manufacturing PMI fell below 50. In Japan, December’s industrial output fell more than expected, whereas retail sales slowed unexpectedly. In US business results, Colgate was in line with expectations, Caterpillar came in above, and Chevron below, among others.
What we expect for today
European stock markets would see gains close to 1.0%, pricing in Friday’s positive closing bell in the US and Asia despite the fact that Russia continues to increase the shipment of troops to the border with Ukraine and the weak macroeconomic data released in China-Japan in a week where the BoE will raise rates again. Currently, S&P futures are up +0.17% (the S&P 500 ended +1.1% higher vs. the European closing bell). Volatility in the US fell (VIX 27.66). Asian markets are climbing (China’s CSI 300 closed and Japan’s Nikkei +1.1%).
Today in Spain and Germany we will learn January’s preliminary inflation), in the euro zone the preliminary 4Q GDP, and in Mexico the 4Q GDP. In US business results: Charter communications and NXP semiconductors, among others will release their earnings. As for debt auctions, France will issue € 5.4 Bn in 3, 6 & 12M T-bills.