Global Stock Markets Plummet Amid Trade War Fears and Economic Concerns
The IBEX 35, the main indicator of the Spanish Stock Market, continues its downward spiral, plummeting 64 points after the session opened, and falling below the critical 11,700 mark for the third consecutive day amidst fears of a global recession and the ongoing trade war. As of 9:15 AM, the IBEX 35 is trading at 11,625.5 points after having previously collapsed by 491 points just minutes into trading, hitting 11,816.6 points. The accumulated gains for the year have now dwindled to a mere 0.28%.
Across the board, all values within the IBEX have registered declines, with significant losses observed in major companies. Indra has plummeted by 21.21%, Santander by 14.45%, and Mapfre by 14.04%. Other notable declines include BBVA at 8.45%, Repsol at 7.96%, Telefónica at 5.83%, Iberdrola at 4.46%, and Inditex at 4.19%.
In international markets, Brent crude oil continues its correction, falling by 3.51% down to $63.3 per barrel, while the euro displays resilience against the US dollar, trading at 1.101.
European and international stock markets are also experiencing sharp decreases in response to the tariffs recently imposed by US President Donald Trump. The Paris Stock Exchange commenced trading on Monday with a clear downward trend, suffering an initial loss of 6.67%. The CAC40 index fell over 2% shortly after opening, heavily affected by declines in prominent companies such as Airbus, which dropped by more than 13%, followed by fellow industrial giants Safran and tech firm Capgemini, both declining by over 12%, while luxury goods giant Kering also witnesses a significant drop.
Germany's DAX 40 index opened by falling 1.03% during Monday's session amid the trade war panic, echoing the declines observed in both the Tokyo and Wall Street markets on Friday. The Milan Stock Exchange also reflected these concerns, opening lower and dropping nearly 7% shortly after trading began. The FTSE MIB index has fallen 1.37%, now resting at 32,290.98 points. Simultaneously, the London Stock Exchange saw a decrease of 3.05% at the opening, as the FTSE 100 index lost 245.83 points, settling at 7,809.15 points. The secondary FTSE 250 index also retreated by 3.21%, or 58.89 points, down to 1,776.146 points.
The Asian markets are not exempt from this scenario either, with the Nikkei in Japan collapsing nearly 8%, marking its eleventh worst historical performance and the largest single-day drop since August 2024, retreating close to 3,000 points in response to the tariffs set forth by President Trump, which also target Japan. The Nikkei index, which includes 225 of the country's most representative titles, dropped 783 points, or 2.64%, ultimately closing at 31,136.58 points. Similarly, the Topix index experienced a decline of about 779 points, or 1.93%, settling at 2,288.66.
Today's notable drop in the Nikkei is on record as the eleventh worst percentage decline in its history, emphasizing the financial market instability exacerbated by tariff fears and economic uncertainties on a global scale.
Related Sources: