EUR 100.00 For Business Accounts Only

IBERIAN DAILY 25 MAY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: MAPFRE.

Stock markets fall again
The European stock markets ended with losses once again, dragged down by the outlook for the monetary policy and growth problems (Covid-19 in China and profit warnings from US companies due to rapid macro deterioration). Within the Euro STOXX, Telecoms and Banks were among the few sectors that ended in the black, whereas Retail and Travel&Leisure saw the biggest drops. On the macro side, in the Euro zone, the services and manufacturing PMIs corrected somewhat more than expected but continue to hint at dynamic growth rates, whereas the prices component continues to back upward pressure, although it should have peaked in April. In the United Kingdom, the manufacturing PMI plummeted to 51.8 from 58.9, hinting at an economic slowdown in 2Q’22. In the US, May’s Richmond manufacturing index returned to negative territory, whereas the manufacturing and services PMIs contracted more than expected and April’s new home sales fell more than expected.
What we expect for today
European stock markets would see gains of around +1.0%. Currently, S&P futures are up +0.5% (the S&P 500 ended +0.9% higher vs. the European closing bell). Volatility in the US rose (VIX 29.45). Asian markets are mixed (China’s CSI 300 +0.2% and Japan’s Nikkei -0.1%).
Today we will learn in Germany the 1Q’22 GDP, in Mexico the 1Q’22 GDP, April’s trade balance and March’s IGAE economic activity index, and in the US April’s preliminary durable goods orders and the Fed meetings. In debt auctions: Germany (€ 2 Bn in bonds due 2038).