EUR 100.00 For Business Accounts Only

IBERIAN DAILY 03 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, BANKINTER.

Trade situation raising doubts
European stock markets ended with slight drops, except the IBEX 35, which once again saw gains. Meanwhile, the EC regretted the expected doubling on steel tariffs and would be readying countermeasures on € 95 Bn of imports in addition to the € 21 Bn already announced (but suspended awaiting trade negotiations). In the STOXX 600, the best-performing sectors were Energy (taking advantage of the oil rally) and Insurance, whereas Autos and Media fell the most. On the macro side, in the euro zone May’s final manufacturing PMI improved unexpectedly, despite the fact that Germany worsened to 48.3. In the US, May’s manufacturing ISM deteriorated unexpectedly (to a low since Nov’24), although the new orders and employment headings improved slightly. As for April’s construction spending, it contracted unexpectedly. From the Fed, Waller was concerned with the impact of tariffs on inflation, although he expects this to be temporary and that rates could be cut by the end of the year. On the commercial side, D. Trump would have requested countries to provide their best offer on trade negotiations by June 4. In China, May’s Caixin manufacturing PMI fell unexpectedly to Sept’22 lows.
What we expect for today
European stock markets would open flat, with a slightly bullish slant. Currently, S&P futures are down -0.37% (the S&P 500 ended +0.56% higher vs. the European closing bell). Asian markets are rising (China’s CSI 300 +0.33% and Japan’s Nikkei +0.10%).
Today in the euro zone we will learn May’s general and core inflation and April’s unemployment rate, in Brazil April’s industrial output and in the US April’s factory orders and JOLTS job openings.