EUR 100.00 For Business Accounts Only

IBERIAN DAILY 14 FEBRUARY + 4Q’21 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ELECTRICITY SECTOR, IAG, REPSOL, TOURISM SECTOR.

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 4Q’21 results to be released over the coming days in Spain.

A week marked by the inflation data in the US
The surprise jump in the US inflation data (January) led to widespread volatility at the end of the week following the rising sovereign debt yields, which was added to the geopolitical risk Friday evening with the alarms of a possible imminent invasion of Ukraine by Russia. In this regard, the US and Russia ordered diplomatic personnel be evacuated from Ukraine. With all this in mind, European stock markets finally performed well, with the Ibex 35, the Dax and the Euro STOXX 50 posting gains of +3%, ~+2.5% and ~+2%, respectively. Within the Euro STOXX, the best-performing sectors were Travel & Leisure and Autos, whereas Utilities and Consumer Goods were the worst relative performers. On the macro side, in the US the University of Michigan consumer confidence index for February fell unexpectedly. In Mexico, December’s industrial output rose more than expected. In US business results, Expedia came in above expectations, and First Energy below.
What we expect for today
The European stock markets would open with drops of more than -1.5% in view of the increased geopolitical risk, with the oil sector, as well as defensive sectors, acting as a safe haven asset following the Brent’s rally. Currently, S&P futures are up +0.05% (the S&P 500 was -1.64% lower vs. the European closing bell). Volatility in the US rose (VIX 27.36). Asian markets are sliding (China’s CSI 300 -1.4% and Japan’s Nikkei -2.23%).
Today there will be no macro references. In US business results, Arista Network, and Advance Auto Parts, among others, will release their earnings. In debt auctions: Germany (€ 6 Bn in 6M T-bills) and France (€ 5.4 Bn in 3M, 6M and 12M T-bills).