EUR 100.00 For Business Accounts Only

IBERIAN DAILY 31 MAY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: AENA, FERROVIAL, MERLIN PROPERTIES.


The Ibex leads Europe
European indices rose, led by the Ibex, which climbed more than +1.7% and returned to 11,300 points with sovereign yields tightening again. Thus, in the STOXX 600, all sectors with the exception of Energy, Technology and Basic Resources saw gains, led by Real Estate and Banks. On the macro side, in the euro zone, May’s economic confidence rose less than expected and May’s unemployment rate dropped one tenth to 6.4%. In Spain, May’s inflation rose slightly below expectations in YoY terms (3.6% vs. 3.3% previously). In the US, the second reading of the 1Q’24 GDP was cut to 1.3% q/qa, as expected, weekly jobless claims rose slightly more than expected and pending home sales fell more than expected. On the political front, Donald Trump was convicted on 34 counts of bribery, although this does not change the election, and he will continue to be the Republican candidate for the November election. In Japan, April’s unemployment rate remained unchanged, retail sales rose less than expected and industrial output fell unexpectedly. In China, May’s leading indicators were disappointing, with both the manufacturing (now in contraction zone) and services PMI falling unexpectedly.
What we expect for today
Stock markets would open flat with the worse performance of cyclical companies highly linked to raw materials (poor data in China) and Technology, after the delayed AI chip sales from the US to the Middle East. Currently, S&P futures are down -0.11% (the S&P 500 ended down -0.17% vs. the European closing bell). Asian stock markets are mixed (China’s CSI 300 -0.10%, Japan’s Nikkei +1.08%).
Today in the euro zone we will learn May’s inflation, in Germany April’s retail sales and in the US May’s personal outlays and the core consumption deflator.