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IBERIAN DAILY 08 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: FCC, GRUPO C. OCCIDENTE.

Stock markets await the Fed
Except for the peripheral stock markets, which posted gains, the European indices fell slightly, and the US was impacted by the rise in debt curves following the rate hike announced by the Bank of Canada. Within the Euro STOXX, the best-performing sectors were Retail (Inditex rose after releasing its results) and Real Estate, whereas Pharma and Insurance saw the bigger drops. On the macro side, in Germany, industrial production rallied somewhat less than expected in April. Separately, the OECD raised its forecast for the Euro zone in 2023 to 0.9% (+0.1pp vs. previously), keeping its 2024 forecast unchanged at 1.5%. Regarding Spain, it raised its GDP growth forecast to 2.1% and 1.9% for 2023 and 2024 (vs. 1.4% and 1.7% previously), albeit warning that this would be highly dependant on public spending and the external sector. As for the US, it forecasts 1.6% growth in 2023 (+0.1% vs. previously) and 1.0% in 2024 (+0.1% vs. previously). In Brazil, May’s inflation slowed more than expected, standing at 3.9%. In the US, the trade deficit increased somewhat less than expected in April. In Japan, the 1Q’23 GDP was raised more than expected, mainly as a result of the higher contribution from inventories.
What we expect for today
European stock markets would trade with losses of around -0.4%, with growth expected to perform worse than value. Currently, S&P futures are down -0.11% (the S&P 500 ended down -0.1% vs. the European closing bell). Volatility in the US rose (VIX 13.94). Asian stock markets are mixed (China’s CSI 300 +0.10%, Japan’s Nikkei -1.23%).
Today we will learn in the Euro zone the final 1Q’23 GDP, in Mexico May’s inflation data, and in the US weekly jobless claims and April’s final wholesale inventories. In debt auctions: Ireland (bonds due 2050).