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IBERIAN DAILY 11 JULY + 2Q’23 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ENCE.

At the end of today’s report, and during the entire results season, we will include a presentation with positive and negative results highlights and previews for the 2Q’23 results to be released over the coming days in Spain.

Caution after the drops
European stock markets reeled in the initial losses from the session, with most indices closing with slight gains in a week that will be marked by the US inflation data release on Wednesday and the start of the results campaign on Friday. In the Euro STOXX, almost all the sectors closed with gains, led by Travel & Leisure and Pharma, with the biggest drops coming in Utilities and Real Estate. On the macro side, in the euro zone July’s Sentix investor confidence fell more than expected to a six-month low. From the ECB, Centeno stated that inflation will be below 3% at the year end, but the core figure will take more time to drop. In the US, from the Fed, L. Mester (Cleveland Fed) and M. Daly (San Francisco Fed) backed the idea of a pair of additional rate hikes. In the UK, retail sales according to BRC sped up to 4.2% vs. the previous 3.7%, boosted by food. In China, the Govt. will extend the aid to the real estate sector through the end of 2024
What we expect for today
European stock markets would see gains of up to +0.5%, fuelled by China’s stimulus expectations. Currently, S&P futures are up +0.04% (the S&P 500 was flat vs. the European closing bell). Volatility in the US rose (VIX 15.07). Asian stock markets are rising (China’s CSI 300 +0.57%, Japan’s Nikkei +0.08%).
Today in the UK we will learn June’s ILO unemployment rate, in Germany July’s ZEW and in Brazil June’s inflation. In debt auctions: Spain (€ 2.5 Bn in 3M and 9M t-bills).