The Day at a Glance | April 7 2025

The Top

• Retail sales in the Eurozone advanced in February, ahead of the imposition of tariffs by the U.S.

• President Donald Trump’s broad tariff plans shook global financial markets, and U.S. stocks are bracing for more turbulence today. 

• On Monday, European Union ministers agreed that the block must prioritize negotiations to remove tariffs imposed by President Donald Trump, rather than focusing on retaliation, although at the same time, they moved forward with an initial package of selective countermeasures.

• Germany’s exports increased more than expected in February, driven by higher demand from the U.S. ahead of anticipated new tariffs by the Trump administration. However, industrial production fell, signaling the difficulties faced by the manufacturing sector in Europe’s largest economy.

• During the January-March period, Mexico sold 365,025 cars (+3.3% y/y), produced 973,485 light vehicles (+4.8% y/y), and exported 775,866 units (-6.0% y/y) in the Mexican automotive market.

• The Bank of Japan warned that uncertainty regarding the country’s economy is increasing, as some companies express concern about the impact on their profits from the rise in U.S. tariffs, signaling that President Donald Trump’s tariffs could jeopardize Japan’s economic recovery.

• Oil prices extended their losses on Monday, falling more than 2%, amidst escalating trade tensions between the U.S. and China, which fueled fears of a recession and lower crude demand, while OPEC+ prepares to increase supply.

Economic Environment

Retail sales in the Eurozone advanced in February, ahead of the imposition of tariffs by the U.S. In February, retail sales rose 2.3% y/y (1.9%e.), after having increased 1.8% y/y in January. Thus, the indicator has recorded eight consecutive months of annual growth. Within retail sales, food sales increased 1.9% y/y (prev. 1.4%), while non-food stores rose 2.5% y/y (prev. 2.8%), and gas stations increased0.7% (prev. -0.5%). Among the largest economies in the European block, sales in Germany increased by 4.8% y/y (prev. 3.2%), in France, they rose 2.3% y/y (prev. 2.1%), and in Spain, they advanced by 3.8% y/y (prev. 2.0%). On a monthly basis, the indicator expanded 0.3% in February, after stagnating for three consecutive months. Overall, retail sales continue to show signs of improvement, which could be explained by the interest rate cuts made by the European Central Bank last year. However, there are challenges ahead due to U.S. trade policy.

Markets and Companies

Major U.S. indices took another hit on Monday morning, marking the third consecutive day of significant declines. The S&P 500 is down -3.94%, accumulating a -13% loss over three days, something not seen in such a short period since the 2008 financial crisis. If it closes at its current level, the index would record a 20% drop from its February record, officially placing it in a bear market.

In Europe, markets plunged sharply. The Stoxx 600 was down -4.1% at 2:00 p.m. London time.

Markets in Asia extended their losses on Monday, as fears of a global trade war intensified risk aversion. Stocks in Hong Kong led the regional declines, with the Hang Seng falling -13.22%.

In commodities, U.S. oil prices fell below $60 per barrel amidst concerns that President Trump’s tariffs could push the U.S. and potentially the entire world into a recession.

In contrast, the price of gold remained stable on Monday, backed by strong demand from central banks and the possibility of an early interest rate cut by the Fed.

In Mexico, the IPC index is down -1.54%.

Over the weekend, the exchange rate fluctuated between a low of 20.44 and a high of 20.78. It´s currently set at 20.74.

Corporate News

• Traditional automakers deepened their declines due to the tariff controversy. Stellantis plummeted more than 9%, while Ford dropped nearly 3%. General Motors fell 5%.

• Tesla’s stock sank nearly 7% amidst the broader market collapse. The Elon Musk-led company has lost more than 40% in 2025 and nearly 8% in April, impacted by supply chain issues due to Trump’s tariffs, along with the fallout from Musk’s political activities.

• Shares of major U.S. tech companies continued to fall. Apple, which manufactures its devices in China, dropped 4% in premarket trading. Nvidia, which makes chips in Taiwan and assembles its AI systems in Mexico and other countries, lost 6%. Alphabet, Microsoft, and Amazon each dropped more than 2%, while Meta fell nearly 4%.