IBEX 35 Plummets Amid Trump’s Tariff Threats to Europe
In an unsettling repeat of market volatility akin to Groundhog Day, the IBEX 35 has once again taken a severe hit following remarks from U.S. President Donald Trump. On Friday, President Trump reiterated his intention to impose a staggering 50% tariff on European goods, set to take effect on June 1. This announcement turned an otherwise calm trading day into chaos, as the Spanish stock index plummeted by 2.5% by 2 PM, ultimately closing at 13,920.4 points.
The banking sector in Spain bore the brunt of this downturn, with major players suffering significant losses. CaixaBank saw a decline of 4.56%, Banco Sabadell followed closely with a decline of 4.43%, while BBVA, Unicaja, Bankinter, and Banco Santander also registered considerable drops—4.35%, 4.24%, 3.75%, and 3.4% respectively.
Inditex, the largest company listed on the Spanish stock exchange, did not escape unscathed either, witnessing a decline of 3.32%. Overall, the majority of stocks within the national index were in the red, with only a few exceptions. The lone standout was Enagás, which managed to gain 1.1%.
The fallout wasn’t limited to Spain. The negative sentiment rippled across Europe, resulting in notable declines in other major markets. London’s FTSE fell by 1.13%, while Frankfurt's DAX decreased by 2%. Paris's CAC was down by 2.38%, and Milan faced a dip of 2.48%. Furthermore, projections for Wall Street futures hinted at a foreboding outlook, indicating possible declines close to 2%.
As uncertainties loom over international trade relations, market analysts caution investors to stay vigilant, as the threat of tariffs continues to stir turbulence across the European financial landscape.
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