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IBERIAN DAILY 22 JANUARY + 4Q’23 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: GRIFOLS, TELEFÓNICA.

At the end of today’s report, and during the entire results season, we will include a presentation with previews for the 4Q’23 results to be released over the coming days in Spain.

All eyes on Central Bank meetings
European stock markets fell following the mounting geopolitical tensions after Pakistan’s attack to Iran, the lower expectations about the imminence of rate cuts and the US earnings season. With this in mind, the Ibex 35 ended last week down near -2.0% lower, below the 10,000-point level. In the STOXX 600 Technology and Media were the best performers, and particularly Travel&Leisure vs. Basic Resources and Real Estate that ended with sharper drops >-2.5%. On the macro side, in the UK, December’s retail sales came in worse than expected, with the market erasing one of the rate cuts expected in 2024. In Mexico, November’s retail sales were below expectations. In the US, December’s existing home sales were disappointing, whereas the (preliminary) University of Michigan Consumer Confidence came in much better than expected in January, adding pressure on the US debt yield. From the Fed, M. Daly (president of the San Francisco Fed) stated that there is “a lot of work to do” in order to bring inflation down to the 2% target, and that it is “premature” to think that interest rate cuts are just around the corner. In US business results, Travelers, Comerica and Oak Valley beat expectations.
What we expect for today
European stock markets would see a bullish opening thanks to the good performance of the US technology sector and the gains posted by the Nikkei, which hit highs from the past 34 years. Currently, S&P futures are up +0.24% (the S&P 500 ended up +0.72% higher vs. the European closing bell). Asian stock markets are mixed (China’s CSI 300 -0.21%, Japan’s Nikkei +1.62%).
Today in the US we will learn December’s leading indicators. In US business results, United Airlines, among others, will release their earnings.