Stocks worldwide are dipping due to Trump's tariffs, with the IBEX 35 plummeting nearly 2%
In a surprising turn of events, global stock markets experienced a minor setback on the first trading day of August, with European markets bearing the brunt of the losses. Despite the recent surge in the S&P 500, reaching a new all-time high, and global stocks gaining about 10% since early April 2025, concerns about tariffs seemed to have little impact on the markets thus far [1][2].
The Spanish index took a significant hit, led by Banco Santander's 4.52% decline. Iberdrola also saw a 0.59% loss, while Repsol dropped by 2.33%. In contrast, the yield on the Spanish bond fell to 3.220%, indicating a demand for Spanish debt [1].
The euro registered a strong gain of 1.42% against the dollar, recovering the 1.15 exchange rate. However, this strength was not mirrored in the oil market, where Brent crude and West Texas Intermediate both lost more than 1%. Brent crude, the European benchmark, fell 1.49% to $70.49 per barrel, and West Texas Intermediate, the US benchmark, dropped 1.67% to $68.09 per barrel [1].
European markets saw significant losses, with Paris down 2.91%, Frankfurt down 2.66%, Milan down 2.55%, and London down 0.70%. The Euro Stoxx50 also fell 2.9%. The IBEX 35 in Spain followed suit, falling by 1.88% to 14,126 points [1].
The Dow Jones Industrial Average fell 1.23% to 43,588 points, and the Nasdaq closed with a 2.24% drop to 20,659. Telefónica managed to rise 0.57%, but Inditex lost 1.86%. BBVA also saw a 1.95% decline [1].
In a rare bright spot, gold acted as a safe-haven asset, rising 1.79% to $3,350 per ounce [1]. Inflation remains steady and corporate earnings are generally surpassing expectations, supporting this positive momentum [2]. The yield on the German long-term bond also fell to 2.644%, indicating a continued demand for German debt [1].
[1] Source: Financial Times and Reuters [2] Source: Bloomberg and CNBC
The average decline in European markets was notable, with indices such as the IBEX 35 in Spain, the Euro Stoxx50, and the Dow Jones Industrial Average experiencing losses. In the realm of business and finance, concerned investors might consider averting risks by investing in safe-haven assets like gold, as its value recently surged.
