EUR 100.00 For Business Accounts Only

IBERIAN DAILY 19 JANUARY + 4Q’23 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: IBERDROLA, NATURY.

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.

Volatility on the market
European stock markets rallied, helped by the start of the results season. In the STOXX 600, the best-performing sectors on the day were Travel & Leisure (driven by Flutter and the warm reception of its guidance) and Technology (driven by the semiconductor industry following the Taiwanese company TSMC’s results), with Household Goods and Utilities ending with losses close to -1%. On the macro side, from the ECB the minutes from the last meeting hailed inflation returning to its target level, but stating that there are still many risks justifying a restrictive policy. In the US the data was a mixed bag, with weekly jobless claims falling more than expected and building permits rising more than expected, while December’s housing starts contracted slightly less than expected. As for January’s Philadelphia Fed index, it recovered much less than the consensus expected, remaining in a contraction zone. Separately, Congress approved a new extension to the spending ceiling until early March in order to have enough time to approve the definitive budget of US$ 1.66 Tn. In Japan, December’s inflation fell in line with expectations, with the core figure at a low since June’22. In US business results, M&T Bank was in line and Keycorp beat expectations.
What we expect for today
European stock markets would open with gains of as much as +0.50%, with banks benefiting from the hike in interest rates and the positive reactions to results released in the technology sector. Currently, S&P futures are up +0.04% (the S&P 500 ended up +0.41% vs. the European closing bell). Asian stock markets are rising (China’s CSI 300 +0.10%, Japan’s Nikkei +1.40%).
Today in the euro zone we will learn January’s preliminary consumer confidence, in Mexico November’s retail sales and in the US December’s second-hand home sales and January’s preliminary U. of Michigan consumer confidence. In US business results, Travelers, Comerica and Oak Valley, among others, will release their earnings.