The Ibex hesitates over 14,000 and tariffs

Trade uncertainty is once again affecting the start of the week. The additional 10% tariffs announced by the US against the BRICS countries are putting investors on guard. Wall Street is looking lower, and doubts are gripping Europe, with the Ibex teetering on the brink of 14,000 points.

The return to activity on Wall Street after its particular long weekend hasn't shifted the focus of the markets. Tariffs are keeping investors on edge. The trade truce imposed by the United States expires next Wednesday, the 9th.

In the absence of final agreements, the White House specified over the weekend that the new tariffs will take effect on August 1. The question remains as to which tariff Donald Trump will impose on each country in the letters he plans to send. As a warning, he has announced that he will apply an additional 10% tariff to the BRICS countries (Brazil, Russia, India, China, and South Africa as founders) for their "anti-American" policies. The European Union, India, and Japan are just some of the countries awaiting agreements with the US, and they will largely determine the impact of the tariff offensive on the global economy.

While awaiting the economic impact of the tariffs, a cyclical market like the oil market is pricing in the new production increase agreed upon by OPEC+ countries at a low price. Their production quotas will increase by 548,000 barrels per day in August, above the expected 411,000. Brent crude is putting the $68 level in doubt.

The Spanish stock market begins the week amidst uncertainties regarding the trade front. The magnitude of the tariffs that markets such as those in the European Union will face will be key to the short- and medium-term direction of European equities. The Ibex ended the week by falling 1.5%, dropping below the 14,000-point level. Today, the Ibex is hovering near the 14,000-point mark again.

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