EUR 100.00 For Business Accounts Only

IBERIAN DAILY 04 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, ELECTRICITY SECTOR, INDRA, SOLARIA.

Sideways markets, awaiting news
Except for the IBEX, which saw profit taking (-0.7%), European stock markets rose slightly awaiting progress in trade talks (Xi Jinping and D. Trump would talk next Friday). In the STOXX 600, the best-performing sectors were Energy (leader for the second straight day, with Brent rallying above US$ 65.80) and Technology, whereas Media and Basic Materials suffered the biggest losses. On the macro side, in the euro zone, for the first time in the past eight months inflation came in below the ECB’s target after falling more than expected (1.9%), with the core figure at 2.3% YoY. In Germany, according to the FT, the government will propose tax exemptions of as much as € 46 Bn through 2029. In the US, April’s factory orders contracted more than expected and JOLTS job openings rallied unexpectedly in April, but layoffs did as well. The OECD cut its global growth forecasts due to the trade war, now expecting an increase of 1.6% in the US in 2025 (vs. 2.2% previously) and 1.5% in 2026 (vs. 1.6% previously), whereas for the euro zone it expects 1.0% (vs. 1.3%) and 1.2% (vs. 1.5%), respectively and for Spain 2.4% (vs. 2.6% prev.) and 1.9% (vs. 2.1% prev). In Brazil, April’s industrial output rose slightly, as expected, although the YoY figure is negative.
What we expect for today
European stock markets would open with slight gains of as much as +0.3% that could ease throughout the session. Currently, S&P futures are down -0.04% (the S&P 500 ended +0.26% higher vs. the European closing bell). Asian markets are rising (China’s CSI 300 +0.50% and Japan’s Nikkei +0.80%).
Today in Spain we will learn April’s industrial output, in the euro zone May’s final services PMI and in the US May’s ADP private employment survey and non-manufacturing ISM. The 50% tariffs on steel and aluminium will come into force today except for the UK.