IBEX 35 Plunges 11.51 Points Amid Global Tariff Fears

On March 31, 2025, the IBEX 35 index experienced a significant drop of 11.51 points in pre-market trading, reflecting a turbulent start to the day's trading session.

The Spanish IBEX 35 index faced a challenging end to March, with fears of a global tariff war intensifying due to President Trump's announcement of a massive package of tariffs. This protectionist move has raised concerns about potential damage to the world economy, leading to a decline in the index.

Trump's tariffs, which include levies on aluminum, steel, automobiles, and all products from China, have sparked fears of a recession and stagflation. Bankinter analysts highlighted that these fears were reinforced by the US consumer deflator, which dampened expectations of further cuts in borrowing costs.

Geopolitical tensions also played a role in the market's decline, as prospects for a peace deal between Russia and Ukraine receded. Trump's threat to impose tariffs on Russian crude oil added to the uncertainty, further impacting investor sentiment.

Despite the overall negative sentiment, there were some positive signs. China's PMI business activity index showed the highest reading since March 2024, providing some relief to the world's second-largest economy amidst the escalating trade war.