Key market-moving themes
- Tariffs: rhetoric quickly improving, with signs that trade talks are progressing, including with China
- 1Q25 US earning seasons: good earnings season continues, strong reaction from ‘software’ M7 (Meta and Microsoft) with positive guidance for the year and sustained commitment in AI. Tariff risks encourage caution for ‘hardware’ M7
- 1Q25 EU banks earnings season: strong wave of financials beating estimates (HSBC, UBS, DBK, SAN, BBVA etc), giving further wings to EU stocks
- Disappointing US data showed GDP growth contraction, with peaking inflation and weak jobs data