EUR 100.00 For Business Accounts Only

IBERIAN DAILY 05 JULY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: GRIFOLS, REPSOL.

The market continues to recover
There were moderate gains on European stock markets, which continued the rally started on Wednesday. In the STOXX 600, Banks and Energy led the gains, while Real Estate and Utilities were the worst-performing sectors. On the macro side, in Germany May’s industrial orders shrank unexpectedly for the fifth straight month. In the euro zone, June’s construction PMI fell to a low since Feb’24. The ECB released its meeting minutes, showing some concern for inflation and the possible delay in meeting targets. The market expects just under two rate cuts in 2024 and 5 for 2025, which seems overly optimistic. Lastly, the EC would be studying the possibility of taxing Chinese imports from e-commerce platforms. In the UK elections, as expected, the Labour party showed a historical victory that will allow them to rule with a comfortable majority, as opposed to the conservative party that saw its worst elections.
What we expect for today
Stock markets would open with gains of up to +0.2%, awaiting US employment data. Currently, S&P futures are up +0.10% (the S&P 500 was closed for the holiday). Asian stock markets are falling (China’s CSI 300 -0.87%, Japan’s Nikkei -0.18%).
Today in the US we will learn non-farm employment, unemployment rate and salary gains (all for June).