The Ibex 35 has dropped by 0.32% at the close of the session, settling at 14,088.9 points, after falling by more than 1% in the middle of the trading session, leading to a loss of the 14,000 point mark.
This volatility comes amidst an international context marked by trade tensions initiated by US President Donald Trump, who has threatened to send letters to his trading partners in the next one or two weeks, «setting tariffs unilaterally», that is, before the July 9 deadline when «reciprocal» tariffs come into effect.
These statements come after the US and China announced an agreement on how to implement the tariff de-escalation decided last month in Geneva, as noted by analysts from Renta 4.
On the other hand, experts from Banca March point out the lack of transparency around the agreement reached between the US and China: «There will be no written version published, there has been no official response from the Chinese authorities, and it is not clear if the 90-day deadline agreed in Geneva is still valid,» they argued.
In that line, they framed that «US authorities seem to be seeking flexibility to manage tensions with China in what will be a long negotiation process.»
With a focus on the trade agreement between the United States and Europe, the negotiating team from the European Union (EU) has indicated that the final agreement is very likely to come after the July 9 deadline, although a preliminary agreement could be reached beforehand, as anticipated by Banca March.
In the macroeconomic agenda, this Thursday barely any news has emerged that the Gross Domestic Product (GDP) of the United Kingdom contracted by 0.3% in April compared to the previous month, when activity grew by 0.2%.
Renta 4 analysts also highlight the increased tensions in the Middle East. Specifically, they point out the «difficulty» in reaching an agreement between the US and Iran on the nuclear program («which could result in new restrictions on oil supply with consequent upward pressure on prices»), accompanied by an Iranian threat to attack US bases in the Middle East.
Moreover, there is speculation that Israel is prepared to launch an operation against Iran, while the US may be preparing a partial evacuation of its embassy in Baghdad (Iraq).
In Spain, the Ibex Committee has decided to leave the composition of the main stock index unchanged. The next meeting is scheduled for September 10.
In this context, the biggest gains within the Ibex 35 have been seen in Indra (+1.42%), Banco Sabadell (+1.21%), Solaria (+1.21%), Endesa (+1.16%), and Repsol (+1.11%). On the other hand, the biggest declines were recorded by IAG (-3.59%), Amadeus (-3.00%), Acerinox (-2.41%), Aena (-1.76%), Inditex (-1.74%), and ArcelorMittal (-1.64%).
In the rest of Europe, the main indices also experienced corrections: Frankfurt fell by 0.74%; Milan by 0.58%; and Paris by 0.14%. Only London saw an increase of 0.23% in the session.
The price of a barrel of Brent crude oil, the benchmark for Europe, was trading at a midday drop of 0.10%, at $69.7, while Texas was at $68.26, up by 0.16%.
In the currency market, the euro against the dollar was at 1.1581 ‘green bills’, up by 0.82% from the previous day, while in the debt market, the yield on the Spanish ten-year bond was at 3.078% after decreasing by 3.7 basis points, with the risk premium against the German bond at 58 basis points.
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