Subscribe to receive these charts every morning!

1. When Trump began speaking, the market (after closing) spiraled as more details came out of his mouth.

In an environment where many industries have signaled a material slowdown among low-to-middle-income consumers, today’s “Liberation Day / tariff announcements” will force CEOs to choose between maintaining prices at the cost of their profit margins and raising prices at the risk of further weakening demand.

This is a lose-lose situation for major companies that cannot quickly shift their operations to avoid or mitigate the impact of these tariffs.

And the market is working to swiftly price that into shares after the bell.

From the very top, the market reacted with a knee-jerk sell-off, with all the names of the Magnificent Seven lower by 3-4%. Apple was the worst responder, down 7%.

Here are the futures after closing.

2. Escape from the trade war in Spain.

All markets won’t be equal in the face of a tariff war.

Analysts are hinting that Spanish stocks will at least be partially shielded from any chaos. Spain’s IBEX index is the best-performing major benchmark in Europe this year, up nearly 15%.

It’s also the only one among the continent’s main economies to have seen upward earnings revisions over the last two months, according to data compiled by Bloomberg.

That’s thanks to high-performing banks and utilities, whose domestic business will help protect them from US President Donald Trump’s tariff plans.

As a deep value index, the IBEX is the second-cheapest major benchmark in Europe after the Italian FTSE MIB. It trades at a forward P/E of about 12, a 15% discount to the broader Stoxx 600. While it has re-rated against the broader market in the past year, it’s still below its average long-term discount.

Earnings estimates are pointing to further outperformance ahead.

3. Germany is all about picking the right sector.

The country will benefit from plans for billions in spending on defense, infrastructure and climate projects.

However, Trump’s tariffs may deal a blow to Europe’s biggest economy of as much as 0.5% of gross domestic product, according to Bloomberg Economics. Carmakers Porsche and Mercedes-Benz will be hurt the most, Bloomberg Intelligence calculated, with tariffs wiping out around a quarter of their projected 2026 operating earnings.

4. Negative interest rates are back in Switzerland.

Holders of Swiss francs are willing to pay the borrower instead of receiving interest. Source: C. Vayenas

5. Morgan Stanley likes the telecom sector.

“We continue to call for the outperformance of defensives over cyclicals. We present reasons why we believe European Telcos can outperform in this environment.”

Not a subscriber yet?