Tariff Tensions Weigh on Market Sentiment
The week kicked off with renewed market caution as investors reacted to fresh tariff threats from the United States. Washington’s announcement of a 10% surcharge on imports from BRICS countries (Brazil, Russia, India, China, and South Africa) triggered widespread concern. With the current tariff truce set to expire on Wednesday, July 9, pressure is mounting across global markets. The White House confirmed over the weekend that new duties will take effect starting August 1, though the specific rate for each country remains unclear. President Trump signaled a firm stance, accusing BRICS nations of pursuing “anti-American” policies.
The European Union, India, and Japan are among the countries still negotiating deals with the U.S. The outcome of these talks will play a key role in determining the global economic impact of the new trade measures.
Oil Prices React to OPEC+ Decision
As markets brace for trade disruptions, oil prices opened lower on Monday. Investors responded to OPEC+’s decision to boost production by 548,000 barrels per day in August—significantly higher than the 411,000 barrels previously anticipated. Brent crude slipped below the $68 mark early in the day but later recovered, rising over 1% to surpass $69 per barrel.
European Markets Hold Firm Despite U.S. Pressure
Despite downward pressure from Wall Street, European stocks posted modest gains. The Ibex 35 in Spain finished the session up 0.73%, closing at 14,074 points, reclaiming the 14,000-point mark after a choppy start. This recovery came as markets assessed the likely fallout from upcoming tariff changes and hoped for a last-minute breakthrough in U.S.-EU negotiations.
The European Commission noted “progress” in ongoing technical and political talks with Washington, but avoided commenting on the potential enforcement of new tariffs after the deadline.
Banking Sector Drives Ibex Gains
Spain’s benchmark index found support from strong performances in the banking sector. IAG led the Ibex 35 with a 2.82% gain, followed by Unicaja (+2.48%), Santander (+2.38%), Sabadell (+2.12%), and BBVA (+1.82%). Notably, BBVA submitted an updated prospectus to Spain’s securities regulator, CNMV, regarding its ongoing takeover bid.
On the downside, energy companies dragged on the index. Endesa fell 2.33%, Enagás dropped 1.57%, Solaria slipped 2.87%, and Iberdrola declined 1.07%. The energy sector was affected by a proposal from the National Commission on Markets and Competition (CNMC) to reduce the financial return rate for electricity distribution and transport networks between 2026 and 2031—a move seen as below industry expectations.
Other notable losers included Puig (-2.87%) and Rovi (-2.22%).
Stronger Momentum in Other European Markets
Elsewhere in Europe, gains were more robust. Germany’s DAX advanced 1%, Italy’s MIB climbed 0.7%, and France’s CAC 40 rose 0.4%. In contrast, the UK market ended the day in the red.
Wall Street Slips After Holiday Break
Across the Atlantic, U.S. markets resumed trading after the Independence Day holiday with losses. Major indices, including the tech-heavy Nasdaq, dipped around 0.4%, with Tesla among the most affected stocks. The general risk-off mood reflected investor nervousness over trade tensions and global economic uncertainty.
Commodities Watch: Cocoa Prices Fall on Ghana Forecast
In commodity markets, cocoa futures dipped below $7,900 per ton—their lowest level since April 8. The decline followed a July 1 announcement from Ghana’s Cocoa Board forecasting an 8.3% rise in production for the upcoming harvest, reaching 650,000 tons compared to 2024.