EUR 100.00 For Business Accounts Only

IBERIAN DAILY 27 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ELECTRICITY SECTOR, SACYR.

Russia seemingly stabilising
Moderate gains at the start of the week, with the markets paying more attention to the geopolitical situation (Yellen will visit Beijing in July) and Russia. In this regard, Biden ruled out any type of western involvement in the crisis, while Prigozhin stated he had no intention of overthrowing the Govt. Thus, in the Euro STOXX, Chemicals and Energy led the gains, with Real Estate and Food the worst relative performers. On the macro side, in Germany the IFO business climate index for June fell more than expected, due mainly to the expectations component. In Mexico, April’s IGAE economic activity index rose more than expected. The Sintra forum will begin, with Central Banks debating supply shocks, fiscal policy and reducing the ECB’s balance sheet. J. Williams of the Fed sees it as a priority to keep prices stable. In China, PM Li stated the need to underpin demand, but without making any specific announcements.
What we expect for today
European stock markets would repeat yesterday’s pattern, with slight gains, awaiting news from Sintra. Currently, S&P futures are up +0.22% (the S&P 500 ended down -0.23% vs. the European closing bell). Volatility in the US rose (VIX 15.25). Asian stock markets are mixed (China’s CSI 300 +0.89%, Japan’s Nikkei -0.60%).
Today we stress C. Lagarde’s speech in Sintra’s meeting. In the US we will learn durable goods orders and new home sales for May, as well as June’s Richmond manufacturing index. Debt auctions: Italy (€ 4.25 Bn in bonds due 2025 and I/L due 2029).