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IBERIAN DAILY 19 JANUARY + 4Q’20 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: FERROVIAL, GRIFOLS, MELIÁ HOTELS, NH HOTELES, PRISA.

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’20 results to be released over the coming days in Spain.

MARKETS YESTERDAY AND TODAY

A dull session with US markets closed
It was another session of small gains in sovereign bond yields after the release of positive macro data in China, and thus the rises in value and pro-cyclical stocks were much less significant. Thus, the Euro STOXX closed with slight gains, with Basic Resources and Autos offsetting their poor performance on Friday, vs. Consumer Goods and Travel & Leisure, which ended down by -1.5%. On the macro side, in Italy, G. Conte could lose the vote of no confidence today in the Senate. In the US, the next Secretary of the Treasury J. Yellen will ask Congress to back a large fiscal package to face the impact from Covid-19. In Brazil, November’s economic activity index recovered somewhat more than expected.
What we expect for today
European markets would open with gains of around +0.5% with solid performance by financials thanks to the rise in interest rates. Currently, S&P futures are up +0.65% (the S&P 500 was closed for holiday). Volatility in the US ended last Friday at VIX 24.34%. Asian markets are trading with mixed results (CSI 300 -1.27%, Japan +1.35%).
Today we will learn in Germany December’s final inflation data and the ZEW index for January. In Italy, the Senate will hold a vote of no confidence for PM Conte. In US business results, Halliburton, Bank of America, Goldman Sachs and Netflix, among others, will release their earnings. In debt auctions, Spain (€ 2.5 Bn in 3M & 9M T-bills).