EUR 100.00 For Business Accounts Only

IBERIAN DAILY 20 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: BANKINTER.


Corrections on stock markets
European stock markets saw profit taking in a session with lower volume with the US holiday. In the STOXX 600, Basic Resources and Travel&Leisure, hit in 2024, were the best-performing sectors, whereas Real Estate and Technology posted the biggest drops. On the macro side, in the UK May’s inflation moderated in line with expectations to 2.0%, as well as the core data to 3.5% although the services component showed greater strength than expected. In France, J. Bardella, leader of the RN party (Le Pen) rejected the possibility of becoming Prime Minister if he does not obtain an absolute majority in the Parliamentary elections. In the US, the real estate sector confidence (NAHB) fell unexpectedly in June. In Brazil, the Central Bank decided to keep the Selic benchmark rate unchanged at 10.5% and suggested a slower cycle of rate cuts following the rising inflation expectations. In China, the PBoC kept 1Y and 5Y loan reference rates at 3.45% and 3.95%, respectively. On the geopolitical front, the US would be adding pressure on the Netherlands and Japan to further restrict chip manufacturing equipment in China.
What we expect for today
Stock markets would open with gains >+0.3%. Currently, S&P futures are up +0.26% (the S&P 500 was closed for holiday). Asian stock markets are mixed (China’s CSI 300 -0.55%, Japan’s Nikkei +0.10%).
Today in the UK we will see June’s BoE meeting, in Mexico April’s retail sales, in the US weekly jobless claims, May’s building permits and housing starts and June’s Philadelphia Fed index.