EUR 100.00 For Business Accounts Only

IBERIAN DAILY 19 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS.

Last week was marked by Central Banks
Risk assets awaited the messages from Central Banks (Fed, ECB and BoJ), which did not bring about relevant surprises, leaving the door open to continue, or to resume in the case of the Fed, rate rises in the coming months (with the exception of the BoJ that will maintain its ultra-lax policy). Thus, in Europe, most indices ended last week with gains >+2.0%, the Euro STOXX50 closed near 4,400 points and the Ibex35 hit new 2023 highs above 9,500 points. In the Euro STOXX, the best-performing sectors were Basic Consumption and Retail, with Energy and Basic Resources posting the biggest losses last week. On the macro side, in the euro zone, May’s inflation was confirmed at 6.1% YoY whereas wages moderated in the 1Q’23 to 4.6% annually from 5.1% previously. In the US, the University of Michigan consumer confidence rose more than expected in June. In Brazil, April’s economic activity index climbed above expectations (0.56% vs. 0.20% vs. -0.14% previously). On the geopolitical side, the US Secretary of State, A. Blinken, could meet today with Chinese PM Xi Jinping following a constructive meeting yesterday with minister Qin Gang.
What we expect for today
European stock markets would see profit taking, with drops of between -0.5% and -1.0%. Currently, S&P futures are down -0.10% (the S&P 500 ended down -0.44% vs. the European closing bell). Volatility in the US dropped (VIX 13.54). Asian stock markets are sliding (China’s CSI 300 -0.90%, Japan’s Nikkei -1.17%).
Today is a holiday in the US but we will learn June’s NAHB home index. As for auctions, Germany will issue € 5 Bn in 12M T-bills.