The commercial and diplomatic tensions between China and the United States falter the European stock exchanges, producing descents in all of them in the present day. In particular, the Madrid parquet closed the session on Thursday, a holiday in Spain, with a fall of 2.75%, the biggest decline of the year and its largest decrease since October 2017, mainly affected by the tensions between China and the United States and the OPEC meeting. Specifically, the selective ended the day at 8,764 points after having started today's session in 8,918 integers.
Fear of an increase in trade war between the United States and China after the arrest in Canada of the daughter of Huawei founder, Meng Wanzhou, by order of the United States has caused sharp declines in European markets and in the price of the Dow Jones (-2.4% at 17.58, Spanish time). The day of this Thursday has been also marked by the lack of agreement of the OPEC on how much to reduce the production of crude oil, which has taken to the barrel of Brent to record an intraday drop of up to 5%. At 5:58 pm, Brent was trading at 59.14 dollars per barrel, with a drop of 3.9%.
Only two values of the Ibex 35 have managed to close the day positively: Marline, which has been revalued by 0.5%, and Aena, which has gone up 0.2%. The rest of the stocks were on the losses side, led by Dia (-9.3%), CIE Automotive (-5.8%), ArcelorMittal (-5.7%), Repsol (-4.9%) %), ACS (-4.6%), CaixaBank (-4.3%), Técnicas Reunidas (-3.9%) and Santander, Bankia, Sabadell and BBVA, which have lost between 3.5% today in the Stock Market % and 3.8% each. In the debt market, the Spanish risk premium has climbed to 123.6 basis points, with interest at 1.46%, while in the currency market the euro has gained some ground against the dollar, trading to the dollar. 1,1369 'green notes'.
This war between the two superpowers has shaken stock markets around the world although it should be noted that in the parquet floor in Madrid, the fall has been more moderate than in other European parks. With the euro at $ 1,136, the Milan Stock Exchange fell by 3.54%; Frankfurt, 3.48% and is below the 11,000 points, which had not happened for more than two years; Paris, 3.31%; and London, 3.15%. This tension between the two countries comes after the meeting, last weekend, between the US president, Donald Trump, and his Chinese counterpart, Xi Jinping, at the G20 in Argentina where they signed a 90-day truce, which led to advances in the main stock markets.
However, Europe woke up today in losses without references of Wall Street, closed yesterday by the funeral of former US President George Bush Sr., but with significant declines in the Asian squares that presaged new cuts. The Hong Kong Stock Exchange had collapsed a 2.47%; Tokyo it fell almost a two %; Shanghai gave a 1.68% Y Seoul, a 1.55%. In addition to the commercial tension, the fear of a worsening economic situation due to the flattening of the US bond yield curve led investors to sell en masse.