EUR 100.00 For Business Accounts Only

IBERIAN DAILY 03 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: IBERDROLA, NATURGY.


Ibex ends May near annual high
European markets were underpinned at the end of the week by the drop in US sovereign debt yields, although the idea that interest rates will remain higher for longer continues to gain traction. The IBEX 35 ended with gains of around +0.75%, above the 11,300 point reference, while the rest of the European indices ended the week with losses. In the STOXX 600, Telecoms and Real Estate posted the biggest gains, whereas Technology and Travel & Leisure ended with the biggest drops. On the macro side, in the euro zone May’s preliminary inflation rose more than expected (both general and core). In Germany, April’s retail sales fell -1.2% (worse than expected) and in the US personal outlays came in below expectations, with May’s consumption deflator in line with expectations. In China, May’s Caixin manufacturing PMI rose slightly more than expected. In Mexico, surveys and the initial tally would show the Morena party candidate, Claudia Sheinbaum, as the clear winner. OPEC decided to extend the cut of 3.66 M b/d until the end of 2025 and the voluntary cut of 2.2 M b/d for another three months until the end of Sep’24, and starting there to reduce the cuts gradually over a year.
What we expect for today
Stock markets would open with gains of more than +1.0%, with value and small caps being the best performers. Currently, S&P futures are up +0.32% (the S&P 500 ended up +1.44% vs. the European closing bell). Asian stock markets are rising (China’s CSI 300 +0.10%, Japan’s Nikkei +1.07%).
Today in the euro zone we will learn May’s final services and manufacturing PMI, in the US May’s final PMI, April’s construction spending and May’s manufacturing ISM.