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IBERIAN DAILY 18 APRIL + 1Q’23 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: SACYR.

At the end of today’s report, and during the entire results season, we will include a presentation with previews for the 1Q’23 results to be released over the coming days in Spain.

The Ibex is the best-performing index
The week kicked off with losses in most European indices, with the Ibex standing out in positive territory in its fourth consecutive bullish session. In the Euro STOXX, the best-performing sectors were Basic Resources and Travel&Leisure vs. Banks and Insurance that saw the worst relative performance. On the macro side, in the US, April’s Empire Manufacturing index provided a positive surprise with the highest reading since July’22 and April’s real estate NAHB index also climbed above expectations, seeing gains four consecutive months. In China, the 1Q’23 GDP grew above expectations (4.5% YoY vs. 2.9% prev.) thanks to the good performance of consumption (March’s retail sales climbed more than expected), whereas industrial output and investments in fixed assets recovered less than expected. In US 1Q’23 Results, State Street came in worse than expected, M&& Bank in line and Charles Schwab better than expected (deposits dropped in line with expectations and the share buyback plan was suspended).
What we expect for today
The European stock markets would open with slight gains amid significant sector dispersion, with Basic Resources performing well once again following the publication of good growth data in China. Currently, S&P futures are down -0.1% (the S&P 500 ended +0.53% higher vs. the European closing bell). Volatility in the US fell (VIX 16.95). Asian markets are mixed (China’s CSI 300 -0.1% and Japan’s Nikkei +0.4%).
Today in Europe we will learn April’s ZEW, in the UK ILO unemployment rate and in the US March’s construction permits and housing starts. In 1Q’23 US business results, Bank of América, BNY, Goldman Sachs and Netflix, among others, will release their earnings. As for auctions, Spain will issue € 2.5 Bn in 3 & 9M T-bills.