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IBERIAN DAILY 18 JULY + 2Q’24 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: RESULTS HIGHLIGHTS.


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 2Q’24 results to be released over the coming days in Spain.

Trade and Technology war once again shakes the markets
It was another session of losses in Europe, awaiting today’s ECB meeting and the possible indications on future interest rate cuts. Meanwhile, the drops in the technology sector steepened in view of the risk of the US toughening microchip trade restrictions against China. In the STOXX 600, the best-performing sectors were Chemicals and Telecommunications, while Technology and Retail fell the most. On the macro side, in the euro zone June’s final inflation confirmed the preliminary data of 2.5% YoY and the core figure at 2.9%. In the US, June’s industrial output sped up its growth more than expected, whereas building permits and housing starts for June rose more than expected. Biden’s government would be mulling restrictions on Tokyo Electron and ASML for access to microchip technologies and could include additional sanctions against companies with links to Huawei. From the Fed, C. Waller admitted that the point at which financing costs can begin to be reduced is approaching. In Japan, June’s exports and imports moderated more than expected. In US business results, US Bancorp and Citizens beat expectations, Prologis was in line.
What we expect for today
Stock markets would again open with losses, which could be reeled in after the ECB meeting. Currently, S&P futures are up +0.23% (the S&P 500 ended -0.24% lower vs. the European closing bell). Asian stock markets are mixed (China’s CSI 300 +0.33%, Japan’s Nikkei -2.10%).
Today the ECB will meet. In the UK we will learn the number of unemployed and the unemployment rate, in the US July’s Philadelphia Fed, leading indicators and weekly jobless claims. In US business results, Netflix, Domino’s Pizza and M&T Bank, among others, will release their earnings.

COMPANY NEWS

2Q’24 Results highlights and rest of previews
Of the stocks releasing their earnings over the coming days, on the negative side we highlight Vidrala (24/07), as following the profit warning by Verallia two weeks ago in which the company cut its forecasts for revenues and EBITDA 2024 due to the weak demand, we see a risk of VID’s 2Q’24 results disappointing. That said, neither Verallia’s geographical nor product mix (nor the starting estimates) are the same as VID’s.