EUR 100.00 For Business Accounts Only

IBERIAN DAILY 09 APRIL (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: FLUIDRA, GREENING, SANTANDER.


Short-lived rally with tariffs going into force
Today the reciprocal tariffs on Europe (20%) and China (104%, where the de minimis tariff rises to 90% vs. the initial 30%), but yesterday European and US stock markets rallied with gains of more than +2.5% with the hope of possible concessions on both sides of the Atlantic in the ongoing negotiations. The IBEX rose back above 12,000 points. In the STOXX 600, all the sectors closed with gains, led by Insurance (the worst performer the previous day) and Financial Services, with Autos and Basic Materials posting the smallest gains. On the macro side, in Germany the CDU/CSU could sign a coalition agreement today with SPD. In the US, SME confidence fell more than expected, below the last 50-year average, in view of the political uncertainty.
What we expect for today
Stock markets would open with drops >-4.0%, with cyclical sectors but also bond proxies dragged down due to the hike in sovereign debt yields. Currently, S&P futures are down -2.8% (the S&P 500 ended -3.8% lower vs. the European closing bell). Asian markets are mixed (China’s CSI 300 +0.05% and Japan’s Nikkei -4.22%).
Today in Brazil we will learn February’s retail sales and in Mexico March’s inflation.