EUR 100.00 For Business Accounts Only

IBERIAN DAILY 18 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CIE AUTOMOTIVE, ELECTRICITY SECTOR, IAG, TALGO.

Ups and downs on the market
European stock markets were back in the red, while the conflict between Israel and Iran entered its fifth day, and before the Fed’s decision today. In the STOXX 600, only Energy and Real Estate ended in green numbers, whereas Banks and Travel & Leisure once again posted the biggest losses. On the macro side, in Germany the ZEW index improved more than expected in June thanks to the fiscal measures announced by the Govt. and the rate cuts by the ECB. In the US, general and core (ex-autos and gasoline) retail sales contracted more than expected, whereas May’s industrial output fell unexpectedly. June’s NAHB construction sector confidence index fell unexpectedly to a low since Dec’22. Separately, the regulation on stablecoins has been approved by the Senate and will pass to the House of Representatives. The regulators (Fed, FDIC and OCC) consider lowering the supplementary leverage ratio (SLR) by around -1.5%. In Japan, April’s machinery orders contracted less than expected, whereas May’s trade deficit was lower than expected thanks to the sharp drop in imports and a smaller drop than expected in exports. On the geopolitical front, the US would be mulling the possibility of intervening in the Israel-Iran conflict.
What we expect for today
European stock markets would open with slight corrections amid the geopolitical uncertainty and awaiting the Fed’s decision. Currently, S&P futures are up +0.14% (the S&P 500 ended down -0.61% vs. the European closing bell). Asian markets are rising (China’s CSI 300 +0.10% and Japan’s Nikkei +0.78%).
Today the Fed will meet, in the UK and euro zone we will learn May’s inflation, in the US weekly jobless claims, building permits and May’s housing starts and in Brazil the Central Bank will meet.