EUR 100.00 For Business Accounts Only

IBERIAN DAILY 25 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: AEDAS HOMES, ENDESA, NATURGY, REPSOL.


Tariffs continue to set the pace
It was a session of slight drops in Europe vs. the gains in US indices, boosted by rumours of lower tariffs by the Trump Administrations. In the STOXX 600, the biggest gains came in Basic Materials and Technology, with Real Estate and Food leading the drops. On the macro side, in the euro zone March’s PMI data was mixed, with the manufacturing index rallying more than expected and the services index falling unexpectedly, keeping the composite index in the growth zone. Car registrations in Europe fell in February by -3.4% YoY vs. -2.6% previously. In the US March’s PMIs were also mixed, although in this case services rose more than expected and manufacturing fell more than expected, even below the expansion zone. R. Bostic from the Fed now bets on a rate cut in 2025 due to the impact from tariffs on inflation. Meanwhile, D. Trump signed an order to impose 25% tariffs to those countries importing crude oil from Venezuela. In Mexico January’s IGAE activity index recovered less than expected.
What we expect for today
Stock markets would open with slight drops of -0.2%, with some cyclicals like autos and industrials ex-defence dragged down by tariff talks. Currently, S&P futures are down -0.2% (the S&P 500 ended up +0.16% vs. the European closing bell). Asian markets are mixed (China’s CSI 300 -0.1% and Japan’s Nikkei +0.6%).
Today in Germany we will learn March’s IFO index and in the US March’s consumer confidence, building permits and new home sales for February.