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IBERIAN DAILY 12 JULY + 2Q’23 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: BANKING SECTOR, ECOENER, NATURGY.

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 2Q’23 results to be released over the coming days in Spain.

All eyes on US inflation
European markets continued to climb (the Ibex returned to 9,300 points), paying closer attention to today’s inflation data in the US than to the disappointing macroeconomic indicators. Thus, in the Euro STOXX, all the sectors, with the exception of Technology and Household, closed with gains, led by Real Estate and Construction. On the macro side, in Germany, the ZEW index dropped more than expected, with expectations suggesting new falls in the IFO index, and thus greater economic deterioration at the end of the year. In the euro zone, the Eurogroup would decide a restrictive fiscal policy for 2024 next Thursday, eliminating the energy relief measures and reducing the fiscal deficit. In the UK, May’s unemployment rate climbed more than expected to 4% although the rise in wage gains speeded up unexpectedly. In Brazil, June’s inflation dropped in line with expectations to 3.1% YoY, bringing closer rate cuts at the end of the year. In Japan, machinery orders slowed down significantly more than expected in May.
What we expect for today
European stock markets would open with gains of +0.5% that would increase throughout the session. Currently, S&P futures are up +0.10% (the S&P 500 ended +0.24% higher vs. the European closing bell). Volatility in the US dropped (VIX 14.84). Asian stock markets are sliding (China’s CSI 300 -0.11%, Japan’s Nikkei -0.64%).
Today in the US we will learn June’s inflation, as well as in Spain (final), in Mexico May’s industrial output. In debt auctions: Germany (€ 5 Bn in bonds due 2033).


COMPANY NEWS

2Q’23 Results highlights and rest of previews
Of the stocks releasing their earnings over the coming days, on the positive side we highlight Vidrala (19/07), where we expect we expect a positive quarter thanks to the price rises passed on to clients and falling energy costs.