Trump postpones the application of new tariffs to China and goes around the Ibex
The United States Government has decided to delay the application of new tariffs on Chinese products, including laptops, mobile phones, toys
The United States Government has decided to delay the application of new tariffs on Chinese products, including laptops, mobile phones, toys and clothing. As announced by US President Donald Trump, as of September 1, an additional 10% tax on these consumer goods should enter into force, but the US Commercial Representative has announced today that the measure is postponed until December 15
In parallel, the United States has announced that the CPI for July was 1.8%, "when a growth of 1.7% was expected and when the previously published data was 1.6%," explains Sergio Avila , from IG, which adds: " The market is anticipating that the Fed will lower rates in September with a 100% probability ."
All this has caused an upward opening of the US stock exchanges, which in turn has caused European markets to have turned around . In the case of the Ibex, the selective has gone from yielding 0.7%, and being close to erasing all the profits of the year, to bounce more than half a point, a remarkable change in which the small volume of August's own business.
Until that moment, the Ibex 35 was suffering before the numerous points of political instability: the complex situation in Italy , Brexit , the trade war between the United States and China and, in addition, the historic black Monday that Argentina suffered yesterday after the victory of Peronism about Macri. Some large Spanish companies, such as Telefónica and BBVA, have a part of their business in Argentina and although it is not their main market, the devaluation of the peso is not good news for the already weak Spanish market.
The role of the banking sector
The rebound has been led by the banking sector, which was precisely the one that gave more land before the news. This upturn has slightly eased the situation in the sector, which still yields a lot of ground this year and he is primarily responsible for the Ibex being close to its annual minimums. Bankia and CaxaBank , for example, plummet more than 30% in the year, while Banco Sabadell or Bankinter yield around 20%.
It is also essential in the poor behavior of the Spanish selective the fall of more than 10% accumulated by the aforementioned Telefónica , which is listed at just 6.2 euros and has a capitalization of 32,534 million. At the end of 2017, its size on the stock market exceeded 40,000 million, and in 2015 it amounted to 50,000 million.
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