EUR 100.00 For Business Accounts Only

IBERIAN DAILY 21 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: IBERDROLA.


Euro STOXX 50 nearing 5,000 points
The strong opening in US stock markets after the holiday on Wednesday spurred gains in Europe. In the STOXX 600 almost all sectors rose (19/20), led by Technology and Real Estate, whereas Household Goods was the only sector to end with losses, followed by Food. On the macro side, in the UK the BoE kept rates at 5.25% (2 of 7 votes in favour of a cut) ahead of the election on 04 July. In the euro zone, June’s preliminary consumer confidence was worse than expected, and from the ECB, K. Knot believes the uncertainty surrounding the deflation process justifies a data-dependent approach. In the US, weekly jobless claims fell slightly more than expected, building permits and housing starts for May fell unexpectedly and June’s Philadelphia Fed index fell unexpectedly. From the Fed, N. Kashkari suggested one or two years until inflation converges on the 2% target. In Mexico, April’s retail sales rose more than expected. In Japan, May’s general and core inflation rose less than expected whereas June’s services and manufacturing PMI dropped unexpectedly.
What we expect for today
Stock markets would open with slight gains. Currently, S&P futures are up +0.12% (the S&P 500 ended -0.28% lower vs. the European closing bell). Asian stock markets are mixed (China’s CSI 300 -0.83%, Japan’s Nikkei +0.08%).
Today in the UK we will learn May’s retail sales, in the euro zone June’s services and manufacturing PMIs, in Mexico the IGAE activity index for April and in the US May’s second-hand home sales and leading activity indicators.