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IBERIAN DAILY 22 APRIL + 1Q’25 RESULTS. PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: CAF, GREENING.

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.

Stock markets saw a decreasing performance amid doubts about the tariff de-escalation
Tariffs negotiations between the US and the rest of countries continued and also the uncertainty that weighed on the technology sector and mainly on the US Nasdaq (-5.1% from 11/04 to 21/04). Thus, European stock markets saw a decreasing performance, ending with gains >+2.0%. Within the STOXX 600, Energy (underpinned by the rally in crude oil prices) and Real Estate stood out, while Pharma and Consumer Goods were the worst performers. In the euro zone the ECB cut benchmark rates by -25bps, as expected, with the deposit rate standing at 2.25%, and with the bank warning about the deterioration of growth in its communiqué due to the trade tensions and the tightening of financing conditions, while it considers that disinflation is well on good track in the short-term, which opens the door to higher rate cuts. In the US, weekly jobless claims came in below expectations, with worse housing starts data and better-than-expected building permits in March. However, April’s Philadelphia Fed index fell sharply. On another note, the Trump administration questions the Fed’s independence, with D. Trump (and his economic advisor K. Hasset) threatening with the dismissal of J. Powell in view of his reluctance to cut rates and his critics on tariffs. In China, the PBoC kept the 1 and 5Y loan benchmark rate unchanged, as expected, at 3.1% and 3.6%, respectively, whereas the government warned it would retaliate against those countries cooperating with the UK and jeopardizing Chinese interests. In US business results, Keycorp, American Express, Blackstone and Netflix beat expectations.
What we expect for today
Stock markets would open with drops of around -1.0% amid uncertainty about growth. Currently, S&P futures are up +0.4% (the S&P 500 ended down -2.4% vs. the European closing bell on 17/04). Asian markets are mixed (China’s CSI 300 +0.2% and Japan’s Nikkei -0.2%).
Today in the euro zone we will learn April’s preliminary consumer confidence and in the US April’s Richmond Fed index. In US business results Moody’s, Verizon, GE, Equifax and Tesla, among others, will release their earnings.