IBERIAN DAILY 04 JULY (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: ENDESA, FCC, GRIFOLS, METROVACESA, REPSOL.Stock markets see new gains
European stock exchanges saw gains, bolstered by cyclical sectors following the better readings from Asia, and particularly from China. In the Euro STOXX, the best-performing sectors were Basic Resources and Energy (oil rallied with Saudi Arabia’s announcement it will extend the production cut by one month and that Russia will lower production by -500,000 b/d in August), whereas Media and Consumer Goods posted the biggest drops. On the macro side, in the euro zone, June’s final manufacturing PMI worsened vs. the preliminary data due to the tightening of the monetary conditions, falling to its lowest level (43.4) since the beginning of Covid-19. By regions, Spain’s resistance stood out vs. the worse reading of Germany and Italy. From the ECB, J. Nagel suggested that rate rises are not over yet. In the US, June’s manufacturing ISM fell again unexpectedly with sharp drops in the price and employment indices. On another note, May’s construction expenses rose at a faster pace, underpinning the recovery of the real estate sector. In China, the Govt. halted exports on two important minerals for the semiconductor and electric vehicle industries, gallium and germanium, after the Netherlands announced a plan to limit sales of materials used in microchip manufacturing. On the geopolitical side, J. Yellen and the Chinese ambassador, Xie, held “productive” talks on bilateral relations.
What we expect for today
European stock markets would open with new gains although more moderate due to commercial disputes. Currently, S&P futures are unchanged (the S&P 500 ended +0.08% higher vs. the European closing bell). Volatility in the US fell (VIX 13.57). Asian stock markets are mixed (China’s CSI 300 +0.10%, Japan’s Nikkei -0.91%).
Today in Spain we will learn June’s unemployment rate and in Brazil May’s industrial output. As for auctions, Germany will issue € 500 M in inflation-linked bonds due 2033.
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.
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.
Metrovacesa SA, formerly Metrovacesa Suelo y Promocion SA, is a Spain-based real estate developer. The Company specializes in construction and sale of sustainable housing, both single-family and multi-family residential properties. Its activities also include promotion, urbanization and parceling of real estate in general, as well as real estate management for own benefit or on behalf of third parties. Its asset portfolio includes more than 6 million square meters of building land across Spain, as well as already developed properties in cities, such as Malaga, Almeria, Cordoba, Barcelona and Madrid, among others.
Repsol is an oil and gas company. Co. is engaged in all the activities relating to the oil and gas industry, including exploration, development and production of crude oil and natural gas, transportation of oil products, liquefied petroleum gas (LPG) and natural gas, refining, the production of a wide range of oil products and the retailing of oil products, oil derivatives, petrochemicals, LPG and natural gas, as well as the generation, transportation, distribution and supply of electricity. Co. operates in more than 40 countries. Co.'s operations are divided into four segments: Upstream, Downstream, LNG and Gas Natural Fenosa.
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