EUR 100.00 For Business Accounts Only

IBERIAN DAILY 24 MAY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACCIONA ENERGÍA, BANKING SECTOR, IAG, REPSOL.

Slight drops with no big changes
European stock markets fell slightly amidst the weak manufacturing PMI data, recommendations of caution in the luxury sector and the uncertainty surrounding the debt ceiling. In the Euro STOXX, the best-performing sectors were Real Estate and Basic Materials, whereas Consumer Goods (luxury) and Retail were the biggest losers. On the macro side, in the euro zone the reading of May’s PMIs showed divergence, with services remaining strong and manufacturing disappointing the market after deteriorating unexpectedly, but on the whole they do not show a contraction of the GDP in 2Q’23. In the US, April’s new home sales grew more than expected, whereas May’s Richmond manufacturing index recovered unexpectedly. Negotiations on the debt ceiling are stagnated, although talks continue while we approach X day. NVIDIA’s CEO warns that the “chip war” with China will do great damage to the US industry.
What we expect for today
European stock markets would open with losses of up to -0.5%, which could be reeled in throughout the session. Currently, S&P futures are up +0.17% (the S&P 500 ended -0.72% lower vs. the European closing bell). Volatility in the US rose (VIX 18.53). Asian stock markets are sliding (China’s CSI 300 -0.51%, Japan’s Nikkei -0.57%).
Today in the UK we will learn April’s inflation, in Germany May’s IFO and in the US the Fed’s meeting minutes. Debt auctions: Germany (€ 2.5 Bn in bonds due 2038 and 2040).