EUR 100.00 For Business Accounts Only

IBERIAN DAILY 03 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CHANGES IBEX, PROSEGUR, PROSEGUR CASH, TOURISM SECTOR.

MARKETS YESTERDAY AND TODAY

Transition at support levels
European stock markets ended the session without relevant changes in a session lacking drivers. Thus, the Euro STOXX was quite stable, where Autos and Energy were the best-performing sectors (with the good reaction of oil prices to the OPEC+ meeting), while Utilities and Media saw the biggest drops. On the macro side, in Spain, May’s number of unemployed fell by -129,000 people (more than expected), while the Social Security affiliation rose by 212,000 people (-3.8% YoY), suggesting a temporary drop in the 2Q’21 unemployment rate. On another note, the EC recommended caution to the most indebted countries (Spain and Italy) although it postponed the fulfilment of the fiscal targets to at least 2022. In the US, the Fed Beige Book suggests the economy is accelerating, but growing at a moderate pace, and recognises there is cost inflation. Meanwhile, car sales fell more than expected in May. On another note, L. Brainard and N. Kashkari continue to regard the hike in inflation as transitory. Lastly, the Biden Govt. threatened Austria, India, Italy, Spain, Turkey and the UK with additional tariffs if they impose a digital tax. In China, the Caixin services PMI for May fell more than expected, whereas in Japan the services PMI once again fell, now contracting for 16 straight months.
What we expect for today
The main European indices would open with slight gains. Currently, S&P futures are up +0.05% (the S&P 500 ended -0.13% lower vs. its price at the closing bell in Europe). Volatility in the US fell (VIX 17.48). Asian markets are rising (China’s CSI +0.3% and Japan’s Nikkei +0.5%).
Today in the euro zone we will learn May’s final services PMI, in Mexico May’s consumer confidence, and in the US weekly jobless claims, May’s private employment ADP survey, non-farm productivity and the 1Q’21 unit labour costs. In debt auctions: Spain (€ 6.25 Bn in bonds due 2026, 2027 and 2040 & I/L 2027) and France (€ 11 Bn in bonds due 2031, 2044, 2055 and 2072).

COMPANY NEWS

Changes IBEX 35. Ordinary meeting 10 June, we do not expect any changes
On the 10th of June the IBEX Technical Advisory Committee will meet for its first annual ordinary meeting (the next one will be held in September; the follow-up and control meetings are in March and September). We do not expect any changes, although the press has mentioned the possibility of CIE or Meliá being removed from the index, with Sacyr, Ence or Logista entering, although Sacyr and Ence do not meet the minimum market cap weight on the Ibex (0.30%) and Logista the traded volume in cash (>35).