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IBERIAN DAILY 26 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACCIONA, ACCIONA ENERGÍA, NATURGY.

Stock markets consolidation
Following Tuesday’s gains, European stock markets dropped in a session lacking macroeconomic data, with the NATO meeting and the agreement to reach 5.0% of spending in 2035 as the main drivers. In the STOXX 600, most sectors (14/20) saw corrections, led by Food and Media vs. the better performance of cyclical industries such as Automobiles and Technology. On the macro side, in Spain, the final 1Q’25 confirmed the preliminary data of 2.8% YoY. In the US, May’s new home sales reported the sharpest drop in 3 years (more than expected) to the lowest level not seen since October’24. From the Fed, J. Powell’s speech before the Senate Commission did not bring anything new and even though he was optimistic about the economy he also warned that they are on high alert to avoid a stagflation scenario. On another note, D. Trump would be analysing the possibility of announcing the replacement of J. Powell in September or earlier, with K. Warsh, K. Hassett, C. Waller and S. Bessent among the candidates. He also threatened to double tariffs to Spain if the country does not meet NATO’s defence spending target, stating that he will hold talks with Iran next week.
What we expect for today
European stock markets would open with slight gains of up to +0.2%. Currently, S&P futures are up +0.1% (the S&P 500 ended +0.1% higher vs. the European closing bell). Asian markets are mixed (China’s CSI 300 -0.1% and Japan’s Nikkei +1.4%).
Today in the US we will learn the final 1Q’25 GDP, durable goods orders, May’s trade balance and pending home sales, June’s Kansas Fed manufacturing index and weekly jobless claims.