IBERIAN DAILY 26 MAY (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: BBVA, REAL ESTATE SECTOR.MARKETS YESTERDAY AND TODAY
Rise and fall
It was a session of sideways movement, where after a positive morning boosted by the German IFO data for May, European indices began to deflate following a flat opening in the US, with neither growth nor value standing out. Thus, the best-performing sectors in the Euro STOXX were Technology (repeating this week as the best sector) and Real Estate vs. Energy and Insurance (also repeating as a worst performer), which ended with the biggest losses. On the macro side, in Germany May’s IFO index rose more than expected to the same level as May’19, and the 1Q’21 GDP was cut slightly to -3.4% from the previous -3.3% YoY. In the US, both April’s new home sales and May’s Conference Board consumer confidence were disappointing, falling more than expected, whereas the Richmond Fed manufacturing index for May rose more than expected. Lastly, home prices according to CaseShiller rose more than expected to 13.3% YoY (high since Nov’13). In Japan, experts are starting to recommend the suspension of the Olympics due to the risk of mass contagion of Covid-19.
What we expect for today
European stock markets would open flat with some bullish bias. Currently, S&P futures are up +0.3% (the S&P 500 ended -0.15% lower vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 18.84). Asian markets are mixed (China’s CSI -0.10% and Japan’s Nikkei +0.35%).
Today there are few macro data releases, with the highlight being the final 1Q’21 GDP in Mexico. In debt auctions: Italy (€ 3 Bn in bonds due 2022 and I/L due 2030) and Germany (€ 2.5 Bn in bonds due 2026).
Banco Bilbao Vizcaya Argentaria is an international financial group, engaged primarily on providing banking services and consumer finance to private individuals and businesses in Spain and Portugal; providing real estate activity in Spain; providing services to international companies and investment banking, capital markets and treasury management services to clients; and providing the banking, insurance and pension businesses in Mexico and the U.S., as well as in South America.
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