Twelve days after the U.S. shattered global trade rules by starting a tariff war, today no one knows exactly what remains of that announcement, who it will be imposed against, which products, or within what timeframe. In recent days, the Trump Administration has paused the implementation for another three months to start negotiating and has exempted some goods, such as computers or mobile phones, from this particular tariff battle. And this is music to the ears of investors.
European stock markets are meeting expectations and today bounce back by nearly 2% following the trend set by Wall Street last Friday, when the S&P 500 rose by 1.8%. The Ibex 35 advances by 1.7%, thanks to gains in banking, steel companies, and Repsol, which were hit the hardest during the mini-tariff market crisis. CaixaBank leads the Spanish index, with a 3% increase, mirrored by values such as Banco Santander, ArcelorMittal, BBVA, Fluidra, Repsol, or Unicaja. The market is recovering.
In Europe, gains exceed 2%, with the EuroStoxx 50 close to regaining the 4,900 points, and these gains extend to the German market, the Paris Stock Exchange, and also to Italy.
It was not only the reversal by Donald Trump, but also the corporate earnings season that started with the major U.S. banks and was joined by the American Federal Reserve, which clearly stated it will intervene in the markets if necessary. Additionally, this week, the European Central Bank (ECB) could once again lower interest rates by another 25 basis points in the eurozone.
At the beginning of the week, the Brent oilprice, the European benchmark, remains stable below $65 per barrel. Gold continues to rise, with an ounce trading at around $3,246. And all this while American bonds see indecision among investors. The 10-year U.S. debt reflects slight purchases this session, leading its yield slightly below 4.5%. Today, a more relaxed atmosphere is noticeable in German bonds, which have served as a safe haven in recent days, and positions are being unwound this Monday. Germany is paying 2.56% to finance itself for ten years this session.