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IBERIAN DAILY 12 APRIL + 1Q’24 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

mNEWS SUMMARY: FERROVIAL, IBERDROLA, MELIÁ HOTELS.

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 1Q’24 results to be released over the coming days in Spain.

ECB unable to stem profit taking
After a brief period during the ECB President’s speech when the EuroSTOXX 50 managed to dilute its losses, European stock markets began to fall once again, but this time dragged down by the banks in view of the imminent rate cuts in the euro zone. In the STOXX 600, the best-performing sectors were defensive ones like Pharma and Media, whereas Banks and Telecoms posted the biggest losses. On the macro side, in the euro zone the ECB’s meeting ended with no surprises, with reference rates being kept unchanged, but with Lagarde readying the first cut for June. In the US, weekly jobless claims fell more than expected, while March’s core production prices rose in line with expectations. From the Fed, J. Williams (vote) does not see an imminent need to lower interest rates, given the robustness of the US economy, whereas T. Barkin (vote) and S. Collins (no vote) were uncomfortable with inflation data, warning on the lesser need to cut rates. In Brazil, February’s retail sales rose unexpectedly. In Mexico, February’s industrial output rose more than expected. Lastly, the IMF would raise its global growth forecast in its outlook report next week thanks to the strength of the US.
What we expect for today
European stock markets would open with gains slightly >+0.5% with the good performance of the technology sector. Currently, S&P futures are up +0.08% (the S&P 500 ended up +0.73% vs. the European closing bell). Asian stock markets are mixed (China’s CSI 300 -0.19%, Japan’s Nikkei +0.36%).
Today in Germany and Spain we will learn March’s final inflation, in the UK February’s industrial output and in the US March’s import prices and April’s U. Michigan consumer confidence. In US business results, JP Morgan, Citi, Wells Fargo and BlackRock will release their earnings.