IBEX 35 Rebounds as Trump Postpones EU Tariffs

Spain’s IBEX 35 rallied on Monday (26 May), opening around 14,250 points after fears over sweeping US tariffs on EU goods eased over the weekend. The index had slipped to approximately 14,081 at Friday’s close (23 May), following a surprise White House move to impose 50% tariffs on the European bloc.

However, markets may have breathed a sigh of relief after US President Donald Trump announced on Sunday (26 May) that the new tariffs would be postponed until 9 July, allowing time for further negotiations with Brussels. The temporary truce helped restore confidence and reverse the late-week losses.

At today’s (Tuesday, 27 May) opening, the index stood at 14,192 points, up approximately 23.3% year to date and edging closer to its all-time high of 15,945 set in November 2007.

Tariff Shock Triggers Friday Sell-Off

Trump’s surprise tariff announcement on Friday (23 May) sparked a sharp intraday sell-off on the IBEX 35.

That time slot coincided with the first reports in the Spanish press that Trump was back on the offensive with aggressive new trade measures targeting the EU. The rest of Friday saw a partial rebound, with the index closing at approximately 14,104 points.

However, these losses were reversed as the IBEX 35 opened Monday with a 1.1% gain, rising to 14,259 points from Friday’s close of 14,104. Finally, Monday’s session closed at 14,221 points.

Investors Focus on Inflation and Confidence Data

Aside from tariff news, markets are tracking inflation releases and sentiment surveys across Europe and the US. Consumer price index (CPI) figures are due this week from Spain, France, Germany, Italy, and the US.

Spain’s producer price index (PPI) rose 1.9% year-on-year in April, well below the 4.0% forecast and down sharply from 4.6% in March. 

Today will also bring fresh consumer confidence (CCI) data. Germany’s GfK index and eurozone-wide surveys are due, along with the US Conference Board’s consumer confidence reading. (Source: Intereconomia)

Spanish Banks Edge Higher as BBVA Awaits Government Move

Spanish banks opened higher on Tuesday, with BBVA [BBVA.E] up 0.56% (as of the time of the writing) as investors await the government’s decision on whether to advance its hostile takeover bid for Banco Sabadell to the Council of Ministers.

If the government intervenes, it could impose conditions on the deal in the name of public interest, potentially complicating the transaction. In that case, the final deadline for a decision would be 27 June.

Elsewhere at today’s opening, Santander [SAN.E] declined 0.09%, Caixabank [CABK.E] rose 0.58%, and Bankinter [BKT.E] fell just 0.09%.

Conclusion

The IBEX 35 has held firm despite renewed tariff tensions, with Monday’s rebound driven by hopes of a negotiated outcome between Washington and Brussels. Softer inflation prints and upcoming confidence data across the eurozone and the US may offer further support in the days ahead.

Banks remain strong for IBEX35, with BBVA and Caixabank advancing at Tuesday’s open. Yet uncertainties linger, especially around the outcome of BBVA’s Sabadell bid and whether the temporary US-EU trade truce will hold.

With the index nearing its 2007 high, the next few weeks will be crucial in determining whether momentum continues or if external headwinds regain control.

*Past performance does not reflect future results.