The Spanish bank lived yesterday a very black day in the stock market beaten by the impact of the tariffs announced Wednesday by Donald Trump. The entities sank into the IBEX 35 before the fear of the markets to which the Total commercial war of theTied by the US President, it causes an economic recession that ends up ballasting the business and the results of the financial sector.
JP Morgan Chasethe largest bank in the US, has raised from 40% to 60% Liberation Dayn. So that the markets, which on Thursday fit severe corrective throughout the world, yesterday the worst fears consolidated and had the main injured in the banks.
The punishment took a pen 22,730 million euros of the joint value Of the six entities that quote in the Selective Madrid, which dragged the IBEX 35 to a setback of 5.83%, its greatest fall of the last five years. It is necessary to ride at the beginning of confinement by COVID-19, in March 2020, to find a more bulky descent.
The preminence of the banking sector in the index explains the correlation between one fall and another, but Why are entities suffering more punishment of the markets right now?
According to Manuel Pinto, an analyst at Xtb“Due to their cyclical behavior and dependence on economic activity, banks suffer from the expectation of lower activity, lower credit or consumption requests or companies paralysis in the face of global uncertainty, which limits much of its benefits in areas such as mergers or acquisitions, outflows or debt emissions. spreads of credit they begin to rise vertiginously, which could be the beginning of a greater risk of default (non -payment), and companies could be dedicated to lower income and a payment of the highest debt, limiting the activity of the entities. “
In addition, a part of the analysts begins to calibrate the possibility of new stimulus measures by the European Central Bank (ECB) to combat the most likely decrease of economic activity and increase in inflation, which could mean a greater cut in the margin of interest of banking entities and in their results.
One last reason that also influences the falls of the last days is rally that the financial sector stars in the bags for almost two years. Banking values have triggered the heat of types of types, the improvement of their activity and the achievement of profits that, in the case of Spanish groups, have been historical in the last two exercises. Now the rally It seems to have come to an end or, at least, it seems that investors interpret that it is time to collect benefits. Yesterday was the day chosen to start.
Interestingly, the most penalized in Friday’s session was the bank that was best doing it since the late year, Banco Sabadell; The entity lost 11% in the session, until it placed the value of its titles at 2,305 euros. Unicaja, meanwhile, left 10.5%; Caixabank, 10.3%; BBVA, 9.4%; Bankinter, 9.3% and Banco Santander, the largest exposure to the US, almost 8.8%.
Santander bets on the US
Ana BotínPresident of the Cantabrian Entity, reinforced yesterday at the entity’s shareholders’ Board its commitment to the US market despite recognizing the “increase in commercial tensions” that has caused Trump’s last appearance in the White House. Botín admitted that they are “monitoring” the effects of the last ads but, despite this, he said that the US is still a “strategic” market and “with a lot of growth potential.”
Santander launched Open In the country more than five months ago, it has launched its platform Drive for the financing of the purchase of cars and has recently sealed an agreement with Verizonwhereby operator customers subscribe OpenBank savings products benefit from discounts on their bills.
Asked by one of its shareholders, Botín assured that the strategy in the US is giving “very positive” results, said that the risks-return of the financial business there are “very attractive” and that the bank’s strategy is focused on businesses that provide added value, either because they take advantage of the global scale of the entity or because they can leverage their US teams over their markets from outside the American country.
For its part, Gonzalo Gortázar, CEO of Caixabank, said that tariffs are a “economic policy error and involve” hitting a foot “for the United States because it will enter” relatively fast “recession. The entity does not have direct exposure in the US, but like the rest, it would be harmed if the economic recession omens were concretized in the coming months.
Punishment in Europe
The punishment to the banking sector was widespread in all European stock markets, which also ended the week with severe corrective ones. The CAC 40 of Paris registered its worst day since March 2022 and gave 4.26%, Frankfurt and London fell 4.95%and Milan retreated 6.53%.
As in Spain, the Italian stock market was weighed by the high bank presence among its values. The collapses of the transalpine entities were even higher than in Spain, where Banking Monte Paschi Siena left 12.20%, Bper Banca, 10.49%, Mediobanca, 10.35%, Banca Popolare Sondrio, 9.66%, Banking Medialanum, 9.65%and Unicredit, 9.58%.
Despite the bulky of the setbacks, the rental analyst 4, Nuria Álvarez, It offers a more reassuring vision of the stock market earthquake on Friday when considering that “the market is overreach and that probably the implications of tariffs will not reach a point as critical as the market seems to be discounting.”
“We already know that fear is free and, in moments of great uncertainty, the market tends to overcome,” said Álvarez in statements collected by Europa Press.