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IBERIAN DAILY 20 JULY + 2Q’21 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ALMIRALL, FERROVIAL, LIBERBANK, SIEMENS GAMESA, UNICAJA.

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

MARKETS YESTERDAY AND TODAY

Red Monday on the stock markets, awaiting a rally today
Most European indices fell by around -3% amid fears that new restrictions due to the Delta variant may jeopardise the economic recovery. Thus, within the Euro STOXX, all sectors closed in the red, with Household Goods and Pharma being the best relative performers vs. the bigger drops in Banks and Insurance. On the macro side, in the US, July’s NAHB real estate index climbed less than expected. In Japan, June’s general inflation climbed in line with expectations to 0.2% YoY while the core component remained at -0.2%. In China the 1Y and 5Y loan rate remained unchanged at 3.85% and 4.65%, respectively. In US business results, Prologis came in better than expected.
What we expect for today
European stock markets would open with gains of +0.5% that could grow to +1.0%, with mixed performance between cyclical and defensive stocks. Currently, S&P futures are up +0.26% (the S&P 500 ended +0.39% higher vs. its price at the closing bell in Europe). Volatility in the US increased (VIX 22.50). Asian markets are falling (China’s CSI -0.4% and Japan’s Nikkei -0.8%).
Today we will learn in the US June’s building permits and housing starts. In debt auctions: Germany (€ 4 Bn in bonds due 2018). In US business results, Halliburton, Netflix and Philip Morris, among others, will release their earnings.


COMPANY NEWS

2Q’21 Results highlights and rest of previews.
Among the companies releasing their earnings next week, on the positive side we highlight Applus (release date 27/07), where the stock’s poor performance in 2021 (-15% in absolute terms and -21% vs. Ibex) and the fact that it still stands -32% below pre Covid-19 levels make us confident that this results release should act as a catalyst of the share price, as we expect strong growth both in sales (+34.4%; +28% organic) and in EBIT (+569% to € 45.5 M), and we do not rule out that the guidance’21 may be raised.