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IBERIAN DAILY 12 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CAIXABANK, CHANGES IBEX 35, GRIFOLS.

The Ibex below 14,200 points
Despite the progress in trade negotiations between the US and China and the better-than-expected US inflation data, European stock markets ended with losses, led by the Ibex following Inditex’s poor results. In the STOXX 600, the best-performing sectors were Utilities and Energy (for the second consecutive session), whereas Retail and Real Estate ended with the biggest drops. On the macro side, in the US, May’s general and core inflation rose less than expected. Awaiting the signing of the US and Chinese presidents, D. Trump stated he has reached an agreement whereby China will supply rare earths and magnets up front with 10% tariffs on US products. On the contrary, Chinese students could attend US colleges and universities and tariffs on Chinese products would stand at 55% (30% new +25% prior to this administration). Separately, Trump warned that in two weeks he will place unilateral tariffs, whereas the EU is negotiating to extend the date the tariffs will come into effect until after July. In Mexico, April’s industrial output fell more than expected. On the geopolitical front, Iran threatened to attack US bases in the region if negotiations fall through due to the nuclear issue, while the US has ordered the partial evacuation of the Iraqi embassy.
What we expect for today
European stock markets would open with drops >-0.5% with cyclical companies performing worse. Currently, S&P futures are down -0.25% (the S&P 500 ended -0.36% lower vs. the European closing bell). Asian markets are mixed (China’s CSI 300 +0.10% and Japan’s Nikkei -0.65%).
Today in the UK we will learn April’s GDP and industrial output, in the US May’s production prices and weekly jobless claims and in Brazil April’s retail sales.