EUR 100.00 For Business Accounts Only

IBERIAN DAILY 03 JULY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: IBERDROLA, SANTANDER.

Lagarde admits progress made in inflation
European stock markets saw profit taking, where J. Powell’s still cautious comments from Sintra but more confident in the disinflation process moderated losses. In the STOXX 600 among the sectors that rose (8/20 sectors), Energy stood out (thanks to the good performance of Brent crude) vs. Banks, Insurance and Autos that were the worst performers, falling >-1.0%. On the macro side, in the euro zone June’s inflation moderated to 2.5%, in line with expectations, whereas the core data remained at 2.9%, above expectations. On another note, May’s unemployment rate remained at 6.4%, in line with expectations. In France, 210 candidates (131 from NFP and 80 from Macronism) withdrew their candidacy for the 2nd round to create a republican front vs. the far right. In the US, May’s job openings (JOLTS) rose unexpectedly. In Japan, the services PMI dropped slightly in June to 49.4. In China, the Caixin services PMI fell in June more than expected.
What we expect for today
Stock markets would open with slight gains of up to +0.5%, driven by the euphoria in the US with raw materials extending gains. Currently, S&P futures are down -0.10% (the S&P 500 ended up +0.60% vs. the European closing bell). Asian stock markets are mixed (China’s CSI 300 -0.20%, Japan’s Nikkei +1.32%).
Today in the euro zone we will learn June’s services PMI, in Brazil May’s industrial output, in the US June’s private employment survey (ADP), weekly jobless claims, May’s factory orders, June’s non-manufacturing ISM and the minutes from the Fed’s June meeting.