The Ibex 35 closed Tuesday’s session with a 2.55% decrease, settling at 13,031.7 points, down 341 points, in a day marked by uncertainty generated by both the trade war initiated by the United States and the situation in Ukraine.
The Madrid stock exchange, like the rest of the main European indices, experienced declines following the implementation of tariffs by the US on Canada, China, and Mexico.
Analysts at Renta 4 explain that the «truce» granted by US President Donald Trump to Mexico and Canada regarding the 25% tariffs on general products and 10% on energy from Canada ended this Tuesday. «The truce was obtained in exchange for increased border control» due to illegal immigration and the entry of fentanyl.
Regarding China, the US will apply an additional 10% tariff, increasing it to 20%, aiming to impose greater restrictions on semiconductors and «limit technological advancements» in the Asian country. This adds pressure for other countries to impose tariffs on Chinese products as well.
On the other hand, China has announced retaliatory measures on agricultural and food products, with 15% tariffs on chicken and cotton, and 10% on soybeans. Canada has also taken similar actions, imposing a 25% tariff on imports from the US worth $155 billion (€147 billion).
It was also revealed today that Trump has suspended military aid to Ukraine following a discussion he and his Vice President, JD Vance, had with Ukrainian President Volodomir Zelenski last Friday at the White House. In this context, the President of the European Commission, Ursula Von der Leyen, announced a new instrument with €150 billion in loans to boost defense spending within the EU to around €800 billion.
In this scenario, IAG was the biggest loser on Tuesday (-7.72%). Following behind were Banco Santander (-6.05%), BBVA (-5.26%), ArcelorMittal (-5.18%), Banco Sabadell (-4.72%), Fluidra (-3.94%), and CaixaBank (-3.58%).
Despite the market correction, six stocks closed in the positive: Indra (+2.86%), Redeia (+2%), Cellnex (+1.96%), Aena (+0.65%), Enagás (+0.57%), and Endesa (+0.47%).
The Ibex 35’s decline was similar to other major European markets. Paris fell by 2.09%; Frankfurt by 3.53%; Milan by 3.43%; and London by 1.35%.
The Euro Stoxx 50 closed the day with a 2.86% decrease. Other European sectoral indices also experienced declines, such as the Stoxx Banks (-4.07%) or the Stoxx 600 Autos (-5.41%).
In the commodities market, the Brent barrel closed the European session at $70.52, a 1.52% decrease, while the West Texas Intermediate (WTI) reached $67.65, a 1.02% decrease.
The yield of the Spanish 10-year bond stood at 3.129%, up from 3.108% at Monday’s close. As a result, the risk premium reached 63.6 basis points.
In the foreign exchange market, the euro was trading at $1.0533 per euro at the close of the European session, representing a 0.42% appreciation of the common currency.