EUR 100.00 For Business Accounts Only

IBERIAN DAILY 14 APRIL + 1Q’25 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CAF, TELEFÓNICA.

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.

All eyes on US-China trade war
It was a volatile week on stock markets, where the “tariff war” continues to be the main driver. After the US announced it was increasing tariffs on China to 145%, China responded on Friday with a new increase on US products from 84% to 125%. This weekend, Trump changed his tariff policy on China and announced an exemption from reciprocal tariffs for electronic devices, although still maintaining the 20% tariff. Thus, with weekly drops on all European indices, within the STOXX 600, Travel & Leisure and Retail ended with the biggest gains, with Energy and Pharma posting the biggest losses. On the macro side, in the UK the GDP grew +0.5% in February (vs. 0.1% expected) and February’s industrial output also rose more than expected. In Spain and Germany, March’s final inflation confirmed the preliminary reading, as expected. In the US, production prices were worse than forecast, and U. Michigan consumer confidence once again fell in April with 5-year inflation expectations rosing again to 4.4%. In Brazil, March’s inflation fell in line with market expectations. In Ecuador, the conservative candidate Daniel Nobia was declared the winner in the presidential election. In US business results, the large banks released their earnings, with JP Morgan, Wells Fargo, Morgan Stanley and BlackRock beating expectations.
What we expect for today
Stock markets would open with gains, spurred by the lowered US tariffs on Chinese electronics. Currently, S&P futures are up +1.0% (the S&P 500 ended +1.5% higher vs. the European closing bell). Asian markets are rising (China’s CSI 300 +0.25% and Japan’s Nikkei +1.65%).
Today there are no relevant macro releases. In US business results, Goldman Sachs and Pinnacle, among others, will release their earnings.