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IBERIAN DAILY 29 JULY + 2Q’24 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: FERROVIAL, TALGO.

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

Europe outperformed US last week
The drops on the stock market after Tesla and Google presented their earnings dragged down the tech sector and US indices, despite the solid 2Q’24 GDP data. In Europe, the IBEX was one of the best-performing indices (behind the DAX), rising back above 11,100 points. The best sectors on the week in the STOXX 600 were defensive ones like Pharma and Utilities, with Autos and Media being the worst performers on the week. On the macro side, in Spain July’s retail sales fell unexpectedly and the 2Q’24 unemployment rate fell to 11.3%, its lowest level since 2008. From the ECB, J. Nagel left the door open to new rate cuts if the data maintain this trend. In the US, the core consumption deflator rose slightly more than expected to 2.6% YoY in June, with personal outlays rising in line with expectations. The chances of a -25bps rate cut in the Fed’s meeting to be held in September remained stable at around 88%. In China, business earnings climbed in June thanks to the increase in output and exports. In US business results, Aon came in below, 3M beat expectations and Colgate was in line.
What we expect for today
Stock markets would open with gains thanks to the reaction of the Technology sector, awaiting the Fed meeting on Wednesday. Currently, S&P futures are up +0.48% (the S&P 500 ended down -0.10% vs. the European closing bell). Asian stock markets are mixed (China’s CSI 300 -0.39%, Japan’s Nikkei +2.40%).
Today there are no noteworthy macro data releases. In US business results, McDonald’s, OM Semiconductor and Lowe’s among others, will release their earnings.