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IBERIAN DAILY 27 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: IBERDROLA, OHLA, REDEIA, REPSOL.

Spotlight now on the currency market
It was a mixed session on European stock markets, which were a mixed bag with all eyes on the dollar and the drop it suffered yesterday, falling to a low since 2022. In the STOXX 600, Basic Materials and Industrials were the sectors rising the most, with Household Goods and Consumer Goods falling the most (sectors highly exposed to the USD). On the macro side, in the US the 1Q’25 GDP was lowered in its third reading to -0.5% QoQ from the previous -0.3% due to less dynamic private consumption. Durable Goods orders and May’s pending home sales rose more than expected, with weekly jobless claims falling less than expected. In Mexico, the Central Bank cut the reference interest rate, as expected, by -50bps to 8.0%. In Japan, retail sales for May slowed more than expected, as did June’s Tokyo inflation. In China, business profits fell unexpectedly in May. On the trade front, the US would have signed the trade agreement with China, warning that it could place reciprocal tariffs starting on 09 July, but in any event the 10% tariff is here to stay. Meanwhile, the press is suggesting that the EU would be close to reaching an agreement to lower tariffs on the US and open the door to changing digital market regulations.
What we expect for today
European stock markets would open with gains of around +0.5%, with cyclical stocks performing well after the S&P 500 nearly surpassed yearly highs yesterday. Currently, S&P futures are up +0.1% (the S&P 500 ended +0.3% higher vs. the European closing bell). Asian markets are mixed (China’s CSI 300 -0.2% and Japan’s Nikkei +1.4%).
Today in the euro zone we will learn June’s economic confidence index, in Spain May’s retail sales and June’s inflation, in Brazil and Mexico May’s unemployment rate and in the US non-farm employment, the unemployment rate, May’s salary gains and the core consumption deflator.