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IBERIAN DAILY 16 OCTOBER + 3Q’23 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: IAG.

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 3Q’23 results to be released over the coming days in Spain.

Another bearish week
European equity markets were punished in view of the mounting geopolitical risk and the uncertainties on upcoming decisions by the Central Banks on interest rates. This has impacted the STOXX 600, with the best-performing sectors on the week being Energy (due to the hike in crude oil) and Media, whereas Consumer Goods and Travel & Leisure ended with the biggest drops on the week. On the macro side, in the euro zone, industrial output contracted more than expected in August. In the US, September’s import prices rose less than expected, while U. of Michigan confidence fell more than expected. In China, total financing climbed more than expected in September whereas new loans rose less than expected to 3%. In Japan, August’s final industrial output was cut. On the geopolitical front, Iran warned Israel not to invade Gaza, whereas the EU and the US warned Israel not to back an occupation of the Gaza strip. In US business results, JP Morgan, Wells Fargo y Citigroup came in better than expected.
What we expect for today
European stock markets would open flat with a slight bearish slant. Currently, S&P futures are up +0.22% (the S&P 500 ended +0.05% higher vs. the European closing bell). Volatility in the US rose (VIX 19.32). Asian stock markets are falling (China’s CSI 300 -0.77%, Japan’s Nikkei -1.97%).
Today in the US we will learn October’s Empire manufacturing index. In US business results, Rio Tinto, Equity Lifestyle and Herbolarium, among others, will release their earnings.