IBERIAN DAILY 24 MAY (ANÁLISIS BANCO SABADELL)
NEWS SUMMARY: MAPFRE, REPSOL, ROVI, SIEMENS GAMESA, UNICAJA.Technical rally on the stock markets
The European stock markets ended with gains higher than +1%, backed by a strong US opening in a session in which the reversal of the excessively pessimistic sentiment of the past few days prevailed. Within the Euro STOXX, the best-performing sectors were Basic Resources and Banks, whereas Financial Services and Pharma were the worst relative performers. On the macro side, in Germany, May’s IFO climbed unexpectedly and begins to hint at improvement in 3Q’22. In the Euro zone, C. Lagarde suggested that the end of negative rates would come in September. Separately, the EC warned Spain against its high debt and high unemployment and expressed doubt on the effectiveness of the pension reform. In the US, April’s Chicago Fed activity index increased in line with expectations. On the political front, president J. Biden would be reconsidering the tariffs on Chinese imports implemented by the Trump Administration. In Japan, May’s manufacturing PMI fell less than expected (53.2), whereas the service PMI recovered to 51.7. In China, the Govt. announced new fiscal measures (tax exemptions) worth US$ 21 Bn, raising the total stimuli to US$ 396 Bn.
What we expect for today
European stock markets would open with drops of -0.50%, dragged down by the deterioration of the Chinese growth prospects as a result of the lockdown and despite the stimulus measures. Currently, S&P futures are down -1.25% (the S&P 500 ended unchanged vs. the European closing bell). Volatility in the US fell (VIX 28.48). Asian markets are falling (China’s CSI 300 -1.4% and Japan’s Nikkei -0.8%).
Today we will learn in the Euro zone May’s manufacturing and services PMIs, and in the US May’s Richmond manufacturing index and April’s new home sales. In debt auctions: Netherlands (€ 2 Bn in bonds due 2052).
Laboratorios Farmaceuticos Rovi is engaged in the sale of its own pharmaceutical products and the distribution of other products for which it holds licenses granted by other laboratories for specific periods, in accordance with the terms and conditions contained in the agreements entered into with said laboratories.
Mapfre is an insurance company based in Spain. Co. is the parent company of a group engaged in the underwriting and provision of insurance in Spain and abroad. Insurance policies provided include: life, non-life, accident, home-owner, general and health. Through its subsidiaries, Co. is also engaged in the provision of reinsurance, the management of investment funds, pension funds and pension plans, real estate and related services. On the domestic market, Co.'s activities include managing investment funds, pension funds and pension plans, real estate and other service businesses.
Repsol is an oil and gas company. Co. is engaged in all the activities relating to the oil and gas industry, including exploration, development and production of crude oil and natural gas, transportation of oil products, liquefied petroleum gas (LPG) and natural gas, refining, the production of a wide range of oil products and the retailing of oil products, oil derivatives, petrochemicals, LPG and natural gas, as well as the generation, transportation, distribution and supply of electricity. Co. operates in more than 40 countries. Co.'s operations are divided into four segments: Upstream, Downstream, LNG and Gas Natural Fenosa.
Solaria Energia y Medio Ambiente manufactures both solar and thermal cells and panels, rolls out turnkey projects for large installations, operates solar plants and generates electricity through its owned plants.
Unicaja Banco SA is a Spain-based financial institution (the Bank) engaged in the banking sector. The Bank offers services to individual and business customers. Its products and services range includes current and savings accounts, debit and credit cards, consumer and commercial loans, real estate credit, securities brokerage, funds management, leasing, factoring, pension plans, life and non-life insurance, international trade financing, money transfer, as well as treasury, among others. The Bank operates a number of branches in Spain and Morocco. The Bank is controlled by Fundacion Bancaria Unicaja.
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