Spain's Stock Market Falls 1.3% Amid Trump Tariff Uncertainty
The Spanish IBEX 35 index declines as new tariffs on the automotive sector loom, affecting investor sentiment.
The Spanish stock market experienced a significant downturn on Monday, closing down 1.3% at 13,135.4 points, following announcements of new tariffs on the automotive sector by U.S. President Donald Trump, set to take effect on Wednesday.
This forecast has exacerbated investor uncertainty, coinciding with a negative opening on Wall Street, influenced by previous declines in Asian markets.
The primary index, IBEX 35, fell by 173.9 points, reflecting a year-to-date gain of 13.29%.
Among the major declines, International Airlines Group (IAG) led the losses, dropping 6.56% due to an ongoing investigation by the UK's Competition and Markets Authority into an agreement involving five airlines.
Other significant losses included Puig, down 4.72%; Grifols, which declined by 4.43%; and Fluidra, losing 4.33%.
Repsol also reported losses throughout the session, ultimately closing down by 1.24%.
Only five stocks managed to close positively, with Telefónica leading at a gain of 0.74%.
This decline in the Spanish market mirrored trends across European exchanges, with Paris's CAC 40 index falling by 1.58%.
The automotive sector in particular faced pressure as companies awaited confirmation of the proposed 25% tariffs on vehicles produced outside the U.S.: Stellantis dropped 2.15%, Renault 2%, and Michelin 1.79%.
The Milan stock exchange also closed down, with its FTSE MIB index retreating 1.77%, while London's market fell by 0.88%, impacted partly by poor performance in mining groups.
Analysts from Banca March noted that the aggressive nature of Trump's tariff announcements and the uncertainty surrounding their implementation have led to rising concern and declining economic confidence among investors.
In a related development, President Trump notified partners of the Venezuelan state oil company PDVSA, including Repsol, that their permits for exporting crude oil and related products from Venezuela have been canceled.
In response, Spanish Minister of Foreign Affairs, José Manuel Albares, urged for "calm" and indicated that the government is assessing the implications of this decision without rushing into immediate reactions.
He emphasized the need for dialogue as a means to address potential issues.
Repsol’s CEO, Josu Jon Imaz, stated that the company is exploring options to continue its operations in Venezuela, noting that 80% of their activities in the country are gas-related and that Repsol has been operating there for 30 years in compliance with local regulations.
He stressed the importance of maintaining a "fluid dialogue" with U.S. administration officials regarding the situation.
Overall, the Spanish stock market navigate through an environment of heightened geopolitical tensions and evolving economic policies that are impacting investor sentiment regionally and globally.
This forecast has exacerbated investor uncertainty, coinciding with a negative opening on Wall Street, influenced by previous declines in Asian markets.
The primary index, IBEX 35, fell by 173.9 points, reflecting a year-to-date gain of 13.29%.
Among the major declines, International Airlines Group (IAG) led the losses, dropping 6.56% due to an ongoing investigation by the UK's Competition and Markets Authority into an agreement involving five airlines.
Other significant losses included Puig, down 4.72%; Grifols, which declined by 4.43%; and Fluidra, losing 4.33%.
Repsol also reported losses throughout the session, ultimately closing down by 1.24%.
Only five stocks managed to close positively, with Telefónica leading at a gain of 0.74%.
This decline in the Spanish market mirrored trends across European exchanges, with Paris's CAC 40 index falling by 1.58%.
The automotive sector in particular faced pressure as companies awaited confirmation of the proposed 25% tariffs on vehicles produced outside the U.S.: Stellantis dropped 2.15%, Renault 2%, and Michelin 1.79%.
The Milan stock exchange also closed down, with its FTSE MIB index retreating 1.77%, while London's market fell by 0.88%, impacted partly by poor performance in mining groups.
Analysts from Banca March noted that the aggressive nature of Trump's tariff announcements and the uncertainty surrounding their implementation have led to rising concern and declining economic confidence among investors.
In a related development, President Trump notified partners of the Venezuelan state oil company PDVSA, including Repsol, that their permits for exporting crude oil and related products from Venezuela have been canceled.
In response, Spanish Minister of Foreign Affairs, José Manuel Albares, urged for "calm" and indicated that the government is assessing the implications of this decision without rushing into immediate reactions.
He emphasized the need for dialogue as a means to address potential issues.
Repsol’s CEO, Josu Jon Imaz, stated that the company is exploring options to continue its operations in Venezuela, noting that 80% of their activities in the country are gas-related and that Repsol has been operating there for 30 years in compliance with local regulations.
He stressed the importance of maintaining a "fluid dialogue" with U.S. administration officials regarding the situation.
Overall, the Spanish stock market navigate through an environment of heightened geopolitical tensions and evolving economic policies that are impacting investor sentiment regionally and globally.
Translation:
Translated by AI
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