EUR 100.00 For Business Accounts Only

IBERIAN DAILY 27 JANUARY + 4Q’24 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: INDRA, NATURGY, REPSOL, TELEFÓNICA.

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

The IBEX unable to break through resistance levels
The IBEX ended the week below 12,000 points after the results season kicked off with Bankinter and despite more moderate statements from D. Trump (wishing not to impose tariffs on China). Over the week, in the STOXX 600 the best-performing sectors were Consumer Goods (spurred by the results and lower tariff risk) and Industrials, whereas in general the defensive bond proxies like Telecoms and Utilities, along with oil companies, suffered the biggest drops. On the macro side, January’s manufacturing PMI in the euro zone rose more than expected (still below 50), whereas the services index fell in line with expectations. From Davos, C. Lagarde warned of the constant loss of competitiveness and productivity in the European economy compared to the US. In the US, January’s manufacturing PMI rose more than expected, whereas the services index fell unexpectedly. Separately, December’s pending home sales rose slightly more than expected and January’s U. Michigan consumer confidence fell more than expected. Separately, Colombia will accept the US’s deportations terms to avoid 25% tariffs and the suspension of visas. In China, the manufacturing and non-manufacturing PMIs fell more than expected in January, with the former once again below 50. In US business results, American Express and Verizon were in line with expectations.
What we expect for today
Stock markets would open with profit taking of up to -1.0%, with better performance from defensive stocks and bond proxies in a week full of macro releases and business results. Currently, S&P futures are down -1.3% (the S&P 500 ended -0.24% lower vs. the European closing bell). Asian markets are mixed (China’s CSI 300 +0.12% and Japan’s Nikkei -0.94%).
Today in Germany we will learn the IFO business cycle clock and in the US housing starts and December’s building permits. In US business results, AT&T, Oxford Lane and Brown & Brown, among others, will release their earnings.