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IBERIAN DAILY 16 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: SACYR.

ECB continued its roadmap
Despite the fact that the market paid close attention to the ECB meeting, European indices hardly moved after the fact and the IBEX was once again the best performer (this time closing flat). Thus, in the Euro STOXX, the best-performing sectors were Retail and Telecoms, with Banks and Basic Materials posting the biggest losses. The ECB raised interest rates +25bps as expected by the consensus, with hikes expected to increase in July, insisting on the need to bring them to a restrictive enough level due to the persistently high inflation. In the US, May’s retail sales, June’s Empire manufacturing index and weekly jobless claims rose more than expected. Meanwhile, the Philadelphia Fed index for June fell less than expected and May’s industrial output fell unexpectedly. In Japan, the BoJ kept its monetary policy unchanged, as expected, alleging high uncertainty surrounding the recovery of Japan and the fact that inflation will fall in the 2H’23.
What we expect for today
European stock markets would open with slight gains, with value outperforming growth. Currently, S&P futures are down -0.1% (the S&P 500 ended up +0.40% vs. the European closing bell). Volatility in the US rose (VIX 14.50). Asian stock markets are rising (China’s CSI 300 +0.50%, Japan’s Nikkei +0.35%).
Today in the euro zone we will learn May’s final inflation, in the US June’s U. of Michigan consumer confidence and in Brazil April’s economic activity index.