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IBERIAN DAILY 16 NOVEMBER + 3Q’22 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: IBERDROLA.

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

The rally continues
It was a new session of gains at both sides of the Atlantic, especially in the US, amid expectations of cooling inflation after the drop in October’s production prices. Thus, in the Euro STOXX, Technology and Energy led gains, whereas Chemicals and Food posted the biggest drops. On the macro side, in the euro zone, the second reading of the 3Q’22 GDP confirmed the preliminary 2.1% YoY. In Germany, November’s ZEW expectations index recovered more than expected for the second consecutive month. In Spain, October’s final inflation confirmed the preliminary 7.3% YoY. In the US, D. Trump presented in the end his candidacy for 2024 elections. In the UK, September’s ILO unemployment rate climbed more than expected. In China, home prices dropped in October at the highest pace in the past 7 years. In Japan, machinery orders fell much more than expected in September. On the geopolitical front, the impact from a missile on the border of Poland and Ukraine is being investigated and Poland is studying the possibility of activating article 4 of NATO treaty. The initial analysis suggests that the missile did not come directly from Russia. In US 3Q’22 business results, Walmart came in worse than expected (although with the positive performance of inventories) and Home Depot better than expected.
What we expect for today
European stock markets would open with a slight bearish slant. Currently, S&P futures are up +-0.12% (the S&P 500 ended -0.68% lower vs. the European closing bell). Volatility in the US rose (VIX 24.54). Asian markets are mixed (China’s CSI 300 -0.8% and Japan’s Nikkei +0.14%).
Today in the UK zone we will learn October’s inflation, in the US October’s retail sales and industrial output. In US business results, Lowe´s, Target, Cisco and NVIDIA among others, will release its earnings. In debt auctions: Germany (€ 1.5 Bn in bonds due 2038).