EUR 100.00 For Business Accounts Only

IBERIAN DAILY 14 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: COLONIAL, REPSOL.


Europe in the red after the Fed meeting
Europe saw a strong hangover, marked by the European Parliament elections, China’s possible retaliations to EV tariffs and the Fed meeting. Most indices dropped by more than -2.0%, the Ibex to a lesser extent but in any case below the 11,100-point level. In the STOXX 600, with the exception of Household, all sectors saw corrections, led by Automobiles and Banks. On the macro side, in the euro zone, April’s industrial output fell, as opposed to expectations, despite the third consecutive increase in capital goods. In Spain, May’s inflation confirmed the preliminary 3.6% YoY data, as expected. From the ECB, Nagel warned about the inflation once more and about the dependence on data to continue cutting rates. In France, the left-wing parties agreed to form a large coalition “Popular Front” to halt the progress of ultra-right parties. In the US, April’s production prices slowed down, as opposed to expectations, whereas weekly jobless claims climbed more than expected. In Japan, as expected, the BoJ meeting kept the benchmark rate at 0.0%-0.1% and even though it will continue the debt purchases (US$ 38 Bn/month) it announced it will unveil a gradual plan in July to reduce purchases and the balance sheet (around US$ 5 Bn) over the next 2 years.
What we expect for today
Stock markets would open with gains of around +0.5%. Currently, S&P futures are up +0.07% (the S&P 500 ended +0.27% higher vs. the European closing bell). Asian stock markets are mixed (China’s CSI 300 -0.34%, Japan’s Nikkei +0.38%). Today in the euro zone we will learn April’s trade balance and in the US the University of Michigan consumer confidence.