EUR 100.00 For Business Accounts Only

IBERIAN DAILY 23 MAY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: OHLA.

Losses on European markets
Widening sovereign debt yields following the UK inflation data was an excuse for profit taking on European stock markets. Most sectors in the STOXX 600 ended in the red (13 out of 20), with Real Estate and Technology leading the gains, whereas cyclicals like Basic Materials and Consumer Goods posted the biggest losses. On the macro side, in the UK both general and core inflation fell less than expected in April, with the price increase in services remaining high. On another note, the PM R. Sunak announced elections for the 4th of July. In the US the Fed meeting minutes showed that several members would be willing to raise rates if inflation does not return to the convergence of its target pattern although there was greater consensus about the idea of delaying cuts for a longer period of time. In Japan May’s manufacturing PMI came in above 50 again whereas the services PMI dropped slightly to 53.6. In US business results, NVIDIA beat all expectations, improving prospects and announcing a split.
What we expect for today
Stock markets would open with gains of around +0.3%, with the technology sector boosted by NVIDIA’s results. Currently, S&P futures are up +0.62% (the S&P 500 ended -0.18% lower vs. the European closing bell). Asian stock markets are mixed (China’s CSI 300 -0.93%, Japan’s Nikkei +1.21%).
Today in the euro zone we will learn May’s preliminary PMIs and consumer confidence, in the US weekly jobless claims and April’s new home sales and in Mexico the 1Q’24 GDP. In US business results, Medtronic, Ralph Lauren and Ross Stores, among others, will release their earnings.