Trump’s tariffs cover the Ibex 35 in red, which maintains 11,600 points despite Arcelor and BBVA

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By Jack Ferson

Almost the entire Ibex 35 is negative. This is how the Spanish stock market closed today the second trading session of the week in which the scares did not cease because, for a good part of the session, the Spanish selective once again lost the level of 11,600 points, despite yesterday’s renewed hopes to embark on a new path towards new annual highs.

The trigger for falls, Donald Trump’s new threats to impose immediately, once he arrives at the White House on January 20, 25% tariffs on products from Canada and Mexico its two closest neighbors for two fundamental reasons to which it alludes: the entry of drugs, specifically fentanyl, into the United States and illegal immigration. He points out that if these entries into his country are not stopped, he will impose them immediately.

Also, Chinadue to the drug issue on which Trump charges and indicates that will impose additional 10% tariffs on its products, with Beijing’s response indicating that it will do the same if it occurs despite indicating that a trade war will have no winner in the markets.

This fact, due to two factors: that Trump’s next point of tariff attention will be Europe and the effect on Spanish values ​​of these announced tariffs, with special impact on values ​​such as ArcelorMittal due to its Asian implications and BBVA and therefore before the takeover bid. hostile Sabadell, since a good part of its income statement comes from Mexico, are the most punished in a clearly bearish session in Spanish equities.

Thus, the Spanish selective appears to be the most affected of the European stock markets despite the fact that, in the end and despite losing them intraday, It has managed to maintain the level of 11,600 points at the close.

Thus, the IBEX 35 closes on Tuesday with cuts of 0.8% to 11,617.90 points with the falls of ArcelorMittal 3.81%, BBVA 3.31% and Banco Sabadell 2.84% and the increases of ACS 0.55 %, Ferrovial 0.42% and Redeia (REE) 0.06%.

Among the protagonists, BBVA twice. On the one hand, as we have said, it is among the most affected by this increase in immediate tariffs to Mexico of 25% on the export of its products to the US. Mexico is the bank’s main source of profits: in the first nine months of the year, it contributed record profits of 4,193 million euros, 50% of the total.

On the other hand, it was known an hour before the market closed, indicating sources from various media outlets that Brussels authorizes the entity’s hostile takeover bid for Banco Sabadell upon verifying there was no state aid, from a third state outside the EU, that prevented the approval of the European Commission.

Telefónica is also in the news after specifying for the next year, as usual, what the price increases in Movistar will consist of. The company highlights that the increase in costs in the sector, especially due to increases in the main television content providers, will increase the operator’s new rates by up to 4 euros per user.

In terms of recommendations, JP Morgan analysts improve the recommendation of Enagas to neutral and raise the target price to 13.50 euros, while raising the valuation of Redeia (REE) to 17 euros. Regarding Enagás, it improves its recommendation to ‘neutral‘, from the previous ‘underweight’, with a target price that goes from 13 to 13.50 euros per share and potential of 4.8%.

Regarding Redeia (REE), although they improve the target price to 17 euros per sharecompared to the previous 15.60 euros, yesterday the value closed at 17.04 euros.

Already in the rest of Europe, at the close of the market, the EURO STOXX 50 lost 0.79% to 4,762 points, the CAC 40 lost 0.87% to 7,194 points, the Dax drops 0.52% to 19,308 points, and the session in London ends for el FT 100 with falls of 0.39% to 8,259 points.

For Pablo García, general director of Divacons Alphavalue, one of the investment possibilities they have in their portfolio is Novo Nordisk. Despite the market’s punishment, due to its potential in diabetes but, above all, in its anti-obesity medication, when market expectations remain good, and that competitors are not managing to rival the famous Wegovy, and we must bet on him before these levels of assessment.

Already on Wall Street, the Dow Jones takes profits, while the S&P 500 and the Nasdaq rise.

Among the leading companies of the day, Zoom Video shares fell 7.68% mid-session. And the company on Monday raised its fiscal 2025 revenue and adjusted profit forecast, anticipating strong demand for its video conferencing software, while announcing that will expand its share repurchase plan by $1.2 billion.

Zoom raised its full-year adjusted earnings per share forecast to a range of $5.41 to $5.43 per share, compared with the previous range of $5.29 to $5.32. The company reported revenue of $1.18 billion in the third quarter, above the $1.16 billion expected, while profit was $1.38 per share, versus $1.31 estimated by analysts.

Abercrombie & Fitch reported third-quarter earnings $2.50 per share, beating analysts’ estimate of $2.39 per share. Revenue was $1.21 billion, compared to the expected $1.19 billion. The company has also raised its forecast for the full year. their actions from more to less since in the middle of the session they lose almost 5%.

Regarding the analysts’ recommendations, HSBC adds a dose of caution to Goldman Sachs and Morgan Stanley after a very solid year for their shares. Analyst Saul Martinez Downgrades both banks from ‘buy’ to ‘hold’. Although it raises its target price at Goldman Sachs to $608 per share, from $569 previously, the potential is less than 1% compared to yesterday’s close. Morgan Stanley’s target price raises it by $3, to $131 per share, but below yesterday’s close.

At the close of the Spanish stock market, the DOW JONES Ind Average fell 0.48% and stood at 44,523 points, with an S&P 500 that rose 0.27% to 6,002 points and a Nasdaq OMX that gained 0.45 % up to 19,139 points.

Regarding fixed income, again increases of 0.17% and profitability for the 10-year Spanish bond of 2.936%while the German bund stands at 2.2030% with cuts of 0.05%. The risk premium closed at 73 basis points, with an increase of 2.6%.

Regarding oil, increases for the future of the barrel 0.77% European Brent up to 73.03 dollars and an American West Texas that gained 0.88% in price to 69.53. He Gold remains at $2,655 the ounce after rising 0.49%.

The Euro Dollar is trading with drops of 0.24 for the single European currency, and at the close of the Spanish stock market it is exchanged at 1.0469 units. And Bitcoin drops 2.7% and at this closing time of the Spanish stock market it is trading at $93,459.

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