The Day at a Glance | April 1 2025

The Top

• Consumer inflation in the Eurozone declined again in March. 

• Ford, General Motors, and Stellantis are pressuring the White House to exclude auto parts from the new 25% tariffs announced by Trump, citing risks of higher operating costs.

• White House advisers suggest imposing tariffs of around 20% on most U.S. imports. The final decision is expected on April 2^nd, according to official sources.

• European Commission President Ursula von der Leyenannounced that the European Union has a solid plan ready to retaliate against the tariffs announced by the United States.

• On Monday, IMF Managing Director KristalinaGeorgieva stated that President Donald Trump’s push for broad tariffs is creating significant uncertainty and undermining confidence, though it´s unlikely to trigger a recession in the short term.

• Ukraine’s Foreign Minister, Andrii Sybiha, said Kyiv is pushing to advance an economic agreement with the U.S. after President Trump accused Ukraine of attempting to renegotiate previously agreed terms.

• Oil prices remained near five-week highs on Tuesday, as President Trump’s threats to impose secondary sanctions on Russian crude and strike Iran offset concerns about the impact of the trade war on global growth.

Economic Environment

Consumer inflation in the Eurozone declined again in March. The block’s annual inflation stood at 2.2% in March, in line with market consensus expectation and below February´s 2.3% reading. By components, as of March 2025, inflation was 2.9% y/y for food, alcoholic beverages, and tobacco; 3.4% y/y for services; 0.6% y/y for non-energy industrial goods; and -0.7% y/y for energy. Additionally, annual inflation in the Eurozone’s major economies declined between February and March. In Germany, it fell from 2.6% to 2.3%, while in Spain, it dropped from 2.9% to 2.2%. Meanwhile, France remained at 0.9% for a second consecutive month, and Italy inched up from 1.7% to 2.1%. Overall, the Eurozone´s inflation declined mainly due to a pullback in service inflation and an annual drop in energy inflation. These figures back the case for further deposit rate cuts by the European Central Bank.

Markets and Companies

The main U.S. stock indices are trading lower, starting April on a negative note amidst uncertainty over U.S. tariffs and their potential negative implications for the economy. According to the U.S. government, reciprocal tariffs set to take effect on imports will be announced tomorrow. However, there is still some hope for exemptions or greater flexibility for certain countries and products.

In Europe, stock markets showed a positive bias, while performance in Asia was mixed.

U.S. Treasury yields are declining, with the 2-year yield slightly down at 3.89%, while the 10-year yield is seeing a slight uptick, reaching 4.18%. The market awaits further clarity on tariffs and the U.S. employment report set to be released at the end of the week.

In commodities, oil and gold are trading higher.

The peso-dollar exchange rate stands at $20.47, having reached an overnight high of $20.53.

Corporate News

• Johnson & Johnson shares fell 4% after a U.S. judge rejected the company’s $10 billion settlement proposal to resolve lawsuits related to allegedly carcinogenic talc products.

• PVH Corp shares jumped 16% after the company exceeded fourth-quarter estimates, reporting adjusted earnings of $3.27 per share and revenue of $2.37 billion, surpassing LSEG’s consensus estimates of $3.21 per share and $2.33 billion in revenue.