The Ibex falls over 1% and endangers the 9,300 after Trump's tariffs threat

The Ibex closes with falls over 1% at this time (9,305 points) after Donald Trump's tweets on Sunday where he threatened China with an increase in tariffs, this Friday. He would rise the levies on Chinese goods worth $200bn from 10% up to 25%. It has also threatened to impose taxes of 25% on another $325bn in Chinese goods "shortly". So 33 of the 35 values of the selective move down, and twenty do so with more than 1%.

Cie Automotive and ArcelorMittal are two of the Ibex companies that practically led the falls during the whole day on Monday (-4.5% and -3.8%, respectively) with almost 35 titles of the selective in red. This is because they are both being especially hit by the increase in trade tensions between the US and China after Donald Trump has said he intends to increase this Friday the tariffs (from 10% to 25%) on Chinese products and that he also wants to increase "soon" the number of Chinese products to apply rates to.

ACS was down more than 4% in the Stock Exchange session on Monday after its Australian subsidiary Cimic dropped 7% in the market to raise a Hong Kong analysis firm's doubts about its results in 2018

Trump's announcement marks a turnaround in China-US negotiations, which seemed well on track, and has had an immediate impact on the markets. All the European stock markets fall with force (Cac: -1.5%, Dax: -1.45%) and the Asian stocks lived a black day, with cuts of 5.5% for the Shanghai, of 7% in the Shenzhen and 3% for the Han Seng. Now the negotiations that were scheduled to resume this week between both parties in Washington are in the air. It is speculated that China could withdraw from them but some Chinese media suggest that the deputy prime minister, Liu He, will delay meetings on Thursday but will not cancel them and will travel to the US.

"We know from past experiences that this could be one of Trump's infamous negotiating tactics, but there is a high probability that this time it will go wrong for him." China could cancel Lui He's trip as he is clearly not impressed by the prospect of negotiating with a gun pointing at his head. Suddenly, the risk of a real trade war has dramatically increased, and the markets are reflecting it, "says Jasper Lawler, head of analysis at the London Capital Group.

Oil prices joined the 'party' earlier on with falls of 2% after the new threats of Trump. Although as the day progressed they managed to moderate their falls "The prospect that months of trade talks will be disrupted by Trump has raised concerns about the future demand for oil," Lawler adds.

Against this, gold advances positions, although half-hearterdly, and tries to recover the 1,300 dollars (1,283 dollars).

AND THE IBEX?

The Ibex faces this week a new wave of results of the first quarter, this Monday at the close of the market it's Ence's turn. On Tuesday, it will be the turn for Endesa, Grifols, Siemens Gamesa, Cellnex and Viscofan. Telefonica's results will be announced on Friday, while the operator continues showing signs of weakness. Very attentive to the support of 7.20 euros.

This, after last week's Spanish index gave clear signs of weakness. "Our index rises around 8% in the year compared to 16%, on average, by the rest of the European stock exchanges Technically, it has broken the support of 9,360 points In addition, the stochastic moment oscillator is still clearly rotated to the downside and far from marking oversold readings, which is not a good sign ", warns José María Rodríguez, Bolsamanía expert.

In other business matters, it should be noted that LetterOne has announced the complete elimination of the minimum acceptance condition of the opaque DIA.

Finally, regarding the agenda of this Monday, remember that this Monday in the United Kingdom, the Ftse100 was closed due to a national bank holiday. In addition, the PMI services and compounds of April in Europe have come out, in general, better than expected. The PMI composed of the Euro Zone has remained at 51.5 against the expected 51.3. However, in Spain, PMI services fell to 53.1 from 56.8, the worst reading of the data in the last seven months.