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IBERIAN DAILY 24 APRIL + 1Q’23 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ELECTRICITY SECTOR, FERROVIAL, MAPFRE, SACYR.

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

The start of the results season sets the pace on the stock markets
The expectations surrounding the 1Q’23 results campaign set the pace for the stock markets along with the ECB’s meeting minutes (March), which showed there is leeway to keep raising rates. Thus, the Euro STOXX 50 ended the week practically flat near 4,400 points, with the Dax also unchanged, whereas the IBEX 35 ended with moderate gains of around +0.3% near 9,400 points. The best-performing sectors in the Euro STOXX were Utilities and Travel & Leisure, whereas Autos and Real Estate were the worst relative performers on the week. On the macro side, in the UK, March’s retail sales saw a smaller drop, in line with expectations (-3.1% vs. -3.3% expected), but excluding volatile components like gasoline, they were negative. In the euro zone, April’s manufacturing PMI fell unexpectedly, while the services index rose unexpectedly. In the US, April’s manufacturing and services PMIs rose more than expected (50.4 and 53.7, respectively). In Japan, the BoJ governor stated that there will be no changes in monetary policy in this week’s meeting, but a deep investigation into monetary policies applied over the past few decades will be carried out in order to draw up more effective policies. In US business results for 1Q’23, Procter & Gamble and Freeport-McMoRan beat expectations. On the geopolitical front, the US warned South Korea not to solve its chip shortage with supply from China if the latter decides to ban Micron Technology imports.
What we expect for today
Currently, S&P futures are down -0.3% (the S&P 500 ended +0.12% higher vs. the European closing bell). Volatility in the US decreased (VIX 16.77). Asian markets are mixed (China’s CSI 300 -0.58% and Japan’s Nikkei +0.15%).
Today in Germany we will learn April’s IFO and in the UC March’s Chicago Fed NatAct index. In US business results, Coca-Cola, Whirlpool and First Republic Bank, among others, will release their earnings. In debt auctions, Germany and France will place 3M, 6M and 12M t-bills.