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IBERIAN DAILY 15 FEBRUARY + 4Q’21 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ROVI, SIEMENS GAMESA, TÉCNICAS REUNIDAS.

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

The Ibex remains above 8,500 points
European stock markets recovered during the session from early-morning lows after Russian’s Foreign Minister Lavrov expressed his will to continue negotiating with the US, whereas the Russian Minister of Defence S. Shoigu warned that some of the military manoeuvres are winding down. However, the US reduced optimism, stating that Russia’s moves still point to an immediate invasion. Thus, the Euro STOXX ended -2.5% lower, with Banks and Basic Resources leading corrections (the best-performing sectors YtD), whereas Real Estate and Financial Services ended with the best relative performance. On the macro side, in the US, from the Fed Barkin expects the high inflation not to continue over time while Bullard suggest 100bps of rises through July’22 and that the balance sheet should be lowered to increase the public debt curve. In the Euro zone, several ECB members (Lagarde, Makhlouf from the Bank of Ireland, and Visco, from Italy) continue to tone down the hawkish message, warning that the market is not aligned with the ECB’s view and that the planned order to reduce purchases before raising rates will be maintained. In Japan, the 4Q’21 GDP recovered less than expected. In US business results, Advance Auto, and Arista Networks came in better than expected and Vornado Realty worse.
What we expect for today
European stock markets would open with drops of around -0.5%, with better performance from technology and defensive stocks as a result of the conflict in Ukraine, after the US curbed its optimism surrounding a diplomatic solution from Russia. Currently, S&P futures are down -0.1% (the S&P 500 was -0.26% lower vs. the European closing bell). Volatility in the US rose (VIX 28.33). Asian markets are trading with mixed results (China’s CSI 300 +0.7% and Japan’s Nikkei -0.8%).
Today in the UK we will learn December’s ILO unemployment rate, in Spain January’s final inflation, in the euro zone February’s ZEW and the 4Q’21 GDP, in the US February’s Empire index and January’s production prices. In US business results, Zoetis, Ecolab, Welltower, Marriot Int. Allegion and Wynn Resorts, among others, will release their earnings. In debt auctions: Spain (€ 2.5 Bn in 3 &9M T-bills).