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IBERIAN DAILY 04 MAY + 1Q’21 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: MEDIASET.

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 1Q’21 results to be released over the coming days in Spain.

MARKETS YESTERDAY AND TODAY

The US stock market continues to drive the rest of markets
Following a slightly bearish opening and without references, European stock markets recovered after the bullish opening of Wall Street. Thus, most sectors in the Euro STOXX ended with gains, with Energy, Real Estate, Insurance and Automobiles climbing +1% or higher, while Technology (dragged down by the profit taking in some US technology groups) was the only sector ending in negative territory and Pharma and Banks flat. On the macroeconomic level, in the euro zone, Aprils’ final manufacturing PMI were raised slightly and March’s retail sales in Germany speeded more than expected. On another note, the EU would propose the opening of borders (avoiding the quarantine period) abroad to the vaccinated population. In the US, on the contrary, the manufacturing ISM fell sharply and unexpectedly (although from very high levels), underscoring problems in the supply chains and higher inflationist pressure, and March’s construction spending slowed down more than expected. In US Results Estee Lauder released disappointing sales.
What we expect for today
The European stock markets would see a slightly bearish opening. Currently, S&P futures are down -0.2% (the S&P 500 ended practically unchanged vs. its price at the closing bell in Europe). Volatility in the US dropped slightly (VIX 18.31). The main Asian markets are closed today (China’s CSI and Japan’s Nikkei), while the technological stock exchanges of Taiwan and South Korea are falling.
Today we will learn in the US the trade balance, factory orders and durable good orders (final) for March. In debt auctions: Germany will issue 5Y and 25Y bonds (€ 700 M) and Spain 6M and 12M T-bills. In US business results, Under Armour, Pfizer, Dupong, Western Union, T-Mobile and Prudential, among others, will release their earnings.