EUR 100.00 For Business Accounts Only

IBERIAN DAILY 19 MAY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: OHLA.

IBEX hits new yearly high above 14,000
It was a week of gains on both sides of the Atlantic, where stock markets remain euphoric, pricing in an indefinite easing of trade tensions. In the STOXX 600, Technology and Retail were the sectors posting the biggest gains, whereas Insurance and Food fell the most. On the macro side, in the US, May’s U. Michigan consumer confidence fell more than expected, with inflation expectations rising to a record high, whereas April’s building permits fell more than expected and housing starts rose slightly more than expected. Separately, Moody’s downgraded the sovereign debt rating by one notch to Aa1 (stable) in view of the growing fiscal deficit and debt, and Bessent warned that reciprocal tariffs will be imposed on countries not negotiating. In China, April’s industrial output slowed its advance less than expected, while retail sales and investment (dragged down by the residential sector) beat expectations. In Portugal, the centre-right party won the election but did not obtain a majority.
What we expect for today
European stock markets would open flat with some bearish slant amid doubts about the sustainability of the US debt and with bond proxies hit by the widening of debt yields. Currently, S&P futures are down -1% (the S&P 500 ended +0.57% higher vs. the European closing bell). Asian markets are falling (China’s CSI 300 -0.4% and Japan’s Nikkei -0.7%).
Today in the euro zone we will learn April’s final inflation and in the US April’s leading activity indicators.