EUR 100.00 For Business Accounts Only

IBERIAN DAILY 01 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ALMIRALL, CELLNEX, CHANGE IBEX, UNICAJA.

The Euro STOXX is far from highs
Europe saw a new bearish session following the poor Chinese data whereas job openings (JOLTS) in the US rose to 10 M, underpinning the comments made by Fed members in favour of further tightening of the monetary policy. With this in mind, in the Euro STOXX, Telecommunications was the only sector ending in positive territory, followed by Real Estate with the lowest drops, whereas Automobiles and Consumer Goods saw the biggest drops. On the macro side, in Germany, May’s unemployment rose less than expected and the unemployment rate remained at 5.6%, whereas the preliminary inflation moderated more than expected in May (6.1% YoY, at lows from March’22). In this regard, L. de Guindos reacted with optimism to the latest inflation data, admitting that the drop has been greater than expected by the ECB. In Spain, March’s current account balance saw a € 5.575 Bn surplus. The press outlines that if the Spanish political party PP wins the upcoming general elections, it would lower the income tax and eliminate taxes to the banking and energy sectors. In the US, the House of Representatives approved the increase in debt ceiling and it will be now sent to the Senate that could approve it next weekend. In Japan, May’s final manufacturing PMI was cut slightly although it remains above 50. In China, Caixin manufacturing PMI recovered unexpectedly in May above 50.
What we expect for today
European stock markets would open with gains of around +0.8%, with cyclical stocks recovering after yesterday’s correction. Currently, S&P futures are up +0.14% (the S&P 500 ended +0.25% higher yesterday vs. the European closing bell). Volatility in the US rose (VIX 17.94). Asian stock markets are climbing (China’s CSI 300 +0.84%, Japan’s Nikkei +0.73%).
Today in the euro zone we will learn May’s final manufacturing PMI and preliminary inflation, in Brazil 1Q’23 GDP and in the US weekly jobless claims, May’s ADP private employment survey, 1Q’23 non-farm productivity, April’s construction spending and May’s manufacturing ISM. In debt auctions: Spain (€ 6.5 Bn in bonds due 2026, 2029, 2052 and I/L 2033).


COMPANY NEWS

CHANGES IBEX 35. The Technical Advisory Committee will meet on 8 June. We expect no changes.
On the 8th of June, the IBEX Technical Advisory Committee will meet for its first control meeting of the year (the other one being in December). We expect no changes to be made in the components. In the event of changes in weightings, they would be of little impact.