EUR 100.00 For Business Accounts Only

IBERIAN DAILY 11 JULY (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: TALGO.

Ibex rally comes to an end
It was a mixed session for European stock markets where the tariff tension continued following the copper tax and the threats of a 50% tariff to Brazil. In the STOXX 600, Basic Resources (after leading drops yesterday) and Autos were the best-performing sectors vs. defensives industries such as Telecoms and Utilities. On the macro side, in the US, weekly jobless claims dropped, as opposed to expectations. D. Trump requested the Fed a new rate cut once more, stressing that technology groups are at record highs and inflation under control. In Brazil, June’s inflation remained stable at 5.3%, as expected. In South Corea, exports in the first 10 days of July rose by 9.5% YoY. On the trade front, D. Trump threatened to implement a 35% tariff to Canada on the 1st of August (vs. 25% currently on products not complying with the Treaty) and between 15% and 20% tariffs to the rest of partners.
What we expect for today
European stock markets would open with slight profit taking, with the tariff risk looming. Currently, S&P futures are down -0.3% (the S&P 500 ended unchanged vs. the European closing bell). Asian markets are climbing (China’s CSI 300 +0.5% and Japan’s Nikkei is closed).
Today in the UK we will learn the quarterly GDP and May’s industrial output and in Mexico May’s industrial output.