EUR 100.00 For Business Accounts Only

IBERIAN DAILY 14 FEBRUARY + 4Q’23 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: IBERDROLA, REAL ESTATE SECTOR, 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.

Inflation resists and profit taking skyrockets
Strong corrections on European stock markets, which suffered following the widening of debt curves after the disappointing US inflation data. Thus, in the STOXX 600 all sectors ended in the red, with the best performers being Insurance and Energy (after the rally by Brent crude), whereas Technology and Real Estate saw the biggest losses. On the macro side, in Germany the ZEW index for February improved unexpectedly, although the current conditions component deteriorated more than expected. In the UK, the ILO unemployment rate fell more than expected and salary gains fell less than expected, suggesting a highly tense job market. In the US, general inflation fell less than expected to 3.1% YoY in January, while the core figure remained unexpectedly at the previous 3.9% (compared to the expected drop), showing the services component remains quite strong. In US business results, Coca-Cola and Moody’s beat expectations, Marriott released a disappointing guidance and AirBnB released disappointing earnings. Separately, the BofA survey shows the highest optimism from managers over the past two years, as well as exposure to equity.
What we expect for today
European stock markets would open with more profit taking, with drops of up to -0.3%. Currently, S&P futures are down -0.10% (the S&P 500 closed down -0.20% vs. the European closing bell). Asian stock markets are falling (China’s CSI 300 closed, Japan’s Nikkei -0.69%).
Today in the UK we will learn January’s inflation and in the euro zone December’s industrial output. In US business results, Cisco, Kraft Heinz and Williams, among others, will release their earnings.