IBERIAN DAILY 13 JUNE (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: NATURGY, TELEFÓNICA.The Fed would only cut rates once in 2024 but up to four times in 2025
Gains resumed at both sides of the Atlantic, in Europe fuelled by the better US inflation data, with the Ibex returning to 11,200 points, the ES50 index consolidating above 5,000 points and the S&P hitting new record highs. In the STOXX 600, all sectors with the exception of Telecoms and Energy ended with gains, led by Real Estate and Technology. On the macro side, in the UK, industrial output slowed down unexpectedly. In France, the conservative party (The Republicans) removed its president, E. Ciotti, for wanting to form an alliance with the far right. In the US, May’s general and core inflation moderated more than expected to 3.3% YoY and 3.4%, respectively, with the MoM data reporting the lowest level since July’22. On another note, the Fed kept the monetary policy unchanged, with few changes in the statement (small advances in inflation vs. lack of progress in the previous one), but with new rate cut expectations suggesting only 1 cut in 2024 (vs. the previous 3) and 4 additional cuts in 2025 (previously 3). Likewise, the long-term neutral rate was raised to 2.8% from the previous 2.6% and J. Powell once again stressed the dependence on data. Separately, May’s fiscal deficit reached US$ 347 Bn vs. the expected US$ 278 Bn.
What we expect for today
Stock markets would open with slight drops that would turn into gains throughout the sessions. Currently, S&P futures are up +0.17% (the S&P 500 ended -0.28% lower vs. the European closing bell). Asian stock markets are sliding (China’s CSI 300 -0.30%, Japan’s Nikkei -0.18%).
Today in Spain we will learn May’s final inflation, in the euro zone April’s industrial output and in the US May’s April’s production prices.
Telefonica is engaged in the provision of public or private telecommunications services, including ancillary or complementary telecommunications services or related services. Co.'s fixed business includes: traditional fixed telecommunication services, Internet and broadband multimedia services, data and business-aplications services, and wholesale services for telecommunication operators. Co. also provides a range of mobile and related services and products to consumer and business customers, including mobile voice services, value added services, mobile data and Internet services, wholesale services, corporate services, roaming, fixed wireless, and, trunking and paging.
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