- This week will sees second quarter results for many companies
- Oil sees light gains as OPEC meeting is ongoing
The Ibex 35 recovered from losses on Monday to end slightly higher, allowing it to finish above 10,400 points again. It even started to dream of 10,500 again. This week, the index will be alert to various company results for the second quarter. On Monday all eyes will be on the OPEC meeting in Russia.
- 11.473,900
- 0,33%
Banks will take the attention later in the week, with seven major firms publishing results in three days. Bankinter, Bankia, Liberbank, BBVA, Santander, Caixabank and Sabadell will present their numbers for the second quarter, giving the market little time to prepare for such an avalanche of results. The financial sector shined on Monday with gains of more than 1%, which allowed the Ibex 35 to rise 0.19% to 10,446 points.
Investors focused once again on the Spanish motorways. Abertis was up 0.27%, while ACS fell 0.11%. The construction firm lost close to 1bn euros in value after positioning itself as a potential rival to buy Abertis to Italian firm Atlantia
Outside of the financial sector, several large companies will also report such as Telefonica, Repsol and Aena. Monday saw the publication of Faes Farma’s figures, which saw a 13% increase in its profits in the first quarter of the year to 21.2m euros, while Almirall lost 73.1m euros in the first six months of the year. The company fell 2.7% in the general stock exchange, while Faes Farma rose 1.85%.
Acerinox fell 0.57% after receiving a reverse from analysts at Citigroup. The US bank lowered its recommendation to Sell and cut its target price to 10.5 euros, below its current price. Acciona was the worst performer on the day with losses of 1.5%. IAG also was in the red by 0.5%.
OPEC members will meet on Monday in Russia. In the meeting there will be a focus on the achievement of production cuts and advances towards an equilibrium in the market with an excess in demand.
Saudi energy minister Khalid al-Falih said his country would limit the export of crude to 6.6m barrels per day in August, almost 1m below last year’s levels. Brent rose 1.12% to $48.6 per barrel, while West Texas was 1.05% higher at $46.
In economic news, Monday is a day for PMIs. In France, the figures show a deceleration in economic activity. The survey of managers for retail carried out by IHS Markit fell lightly from 55.56.6 to 55.7.
In forex markets, the euro hit another high of two years against the dollar. However, the common currency fell 0.16% to $1.1647.
The FTSE 100 was the worst performer in Europe (-0.97%) after the IMF lowered its forecasts for the economy in April. In the most recent growth forecast it was at 2%, while it is currently at 1.7%. Brexit negotiations appear to be affecting the British economy. The DAX 30 fell 0.45%, hampered by results from automakers.
After the visit of experts to Madrid, the IMF affirmed on Monday that the Spanish economy will be the fastest growing economy amongst world leaders in 2017 and 2018. In this year growth will be at 3.1%, and the following year at 2.4%.
Lastly on Friday Fitch reported that it maintained its credit note for Spain at BBB+, although raised its perspective to positive from stable. The ratings agency sees risks in the short term such as the situation in Catalonia, with an increase in tension likely in the coming months.
