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IBERIAN DAILY 23 APRIL + 1Q’25 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: COLONIAL, SANTANDER.

At the end of today’s report, and during the entire results season, we will include a presentation with positive and negative results highlights and previews for the 1Q’25 results to be released over the coming days in Spain.

US stock markets try to recover
European stock markets ended with gains of 0.5%, benefiting from the US rally where the 1Q’25 earnings season is improving slightly. Within the STOXX 600, Consumer Goods and Basic Resources were the best performers whereas Construction and Pharma posted the biggest drops. On the macro side, in the euro zone, April’s preliminary consumer confidence deteriorated more than expected. In France, E. Macron would be studying the possibility of moving forward the legislative elections to next year to coincide with the municipal elections. In the US, April’s Richmond Fed index deteriorated much more than expected. On another note, D. Trump warned he expects to cut tariffs to China significantly and that he is not planning to dismiss the Fed’s chairman. The IMF cut its global growth forecasts for 2025 and 2026, warning about a possible slowdown if the uncertainty and the implementation of tariffs does not ease, now foreseeing 1.8% growth in the US in 2025 (-0.9 prev.) and 1.7% in 2026 (-0.4 prev.) and 0.8% in the euro zone (-0.2 prev.) and 1.2 (-0.2 prev.), respectively. In Japan, the manufacturing and services PMI improved vs. the drop expected. In US business results, Moody’s, Equifax, GE and 3M beat expectations, Verizon was in line and Halliburton and Tesla released disappointing figures.
What we expect for today
Stock markets would open with gains >+1.5% with the good performance of cyclical sectors such as Basic Resources, Consumer Goods and Financials. Currently, S&P futures are up +1.6% (the S&P 500 ended +0.2% higher vs. the European closing bell). Asian markets are climbing (China’s CSI 300 +0.3% and Japan’s Nikkei +1.7%).
Today in the euro zone we will learn April’s preliminary manufacturing and services PMI and in the US April’s building permits, housing starts and the Fed Beige book. In US business results AT&T, PhillipMorris, Baker Huges and Boeing, among others, will release their earnings.