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IBERIAN DAILY 25 JANUARY + 4Q’23 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: BANKING SECTOR, ECOENER, GRIFOLS, IAG, OHLA.

At the end of today’s report, and during the entire results season, we will include a presentation with previews for the 4Q’23 results to be released over the coming days in Spain.

European markets join the rally
Europe rallied following the reaction of January’s activity data ahead of the ECB meeting to be held today. Thus, in the STOXX 600 all sectors, with the exception of Household and Telecommunications, ended with gains, led by Technology and Basic resources. On the macro side, in the euro zone the manufacturing PMI climbed much more than expected thanks to the surprise in Germany’s regional data. However, the services PMI deteriorated again unexpectedly, in both cases suggesting the 1Q’24 growth will slow down. In Germany, the IFO institute cut its growth forecast for the country to 0.7% from 0.9% previously following the budget agreement of the German government. In Mexico, November’s IGAE economic activity index fell unexpectedly. In China, the market climbed after the PBoC announced it will cut the reserve rate by -50bps (the sharpest cut in two years), meaning an injection of around US$ 140 Bn in cash to the banking system. In US business results, Freeport-McMoran beat expectations, while AT&T came in worse than expected and Tesla below expectations after reporting disappointing sales.
What we expect for today
European stock markets would open with slight losses, offsetting yesterday’s gains and awaiting the ECB’s message, where we do not expect anything new. Currently, S&P futures are up +0.08% (the S&P 500 ended -0.61% lower vs. the European closing bell). Asian stock markets are rising (China’s CSI 300 +1.87%, Japan’s Nikkei +0.10%).
Today the ECB will hold its January meeting, in Germany we will learn January’s IFO index, in the US the 4Q’23 GDP, capital goods orders, December’s new home sales and weekly jobless claims. In US business results, Visa, T-Mobile and American Airlines, among others, will release their earnings.