EUR 100.00 For Business Accounts Only

IBERIAN DAILY 27 MAY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: FCC, IAG, TELECOMS SECTOR, TELEFÓNICA.

MARKETS YESTERDAY AND TODAY

Moderate drops on European stock markets
As has been the case over the past few days, it was a session of sideways movement that ended with slight losses despite the bullish US opening in a session lacking macro releases. The best-performing sectors in the Euro STOXX were Real Estate and Energy vs. Banks and Household Goods, which ended with the worst relative performance. On the macro side, the G7, G20 and OECD would be close to an agreement on international tax reform. In Spain, the Govt. and the CEOE (Spanish Confederation of Employers’ Organisations) reached a preliminary agreement to extend furlough plans until the 30th of September. In the US, the Fed’s vice-chairman, Quarles, suggested to start discussing a possible tapering at the upcoming meetings. In Mexico, the final 1Q’21 GDP was cut slightly to -3.6% YoY vs. -3.8% preliminary and -4.35% previously. In China, the bank regulator would have warned banks to stop selling investment products linked to raw materials.
What we expect for today
The European stock markets would open flat with a slightly bearish slant. Currently, S&P futures are down -0.15% (the S&P 500 ended -0.07% lower vs. its price at the closing bell in Europe). Volatility in the US dropped (VIX 17.36). Asian markets are mixed (China’s CSI +0.10% and Japan’s Nikkei -0.6%).
Today in the US we will learn weekly jobless claims, durable goods orders and the second reading of the 1Q’21 GDP and in Mexico the unemployment rate. In debt auctions: Italy (€ 6 Bn in 6M t-bills).