Stock markets extend their losses and the dollar falls due to geopolitical tensions

BarcelonaAnother day with red panels on the stock markets due to geopolitical tensions and the risk of a trade war between Europe and the United States. The Ibex 35 fell by more than 1%, and the other European markets also declined by a similar proportion. The losses affected most stocks. The Eurostoxx-50, which groups the main European shares, reflected this trend, with a drop of around 1.4%. In this context, the dollar weakened further, and the euro strengthened, reaching $1.17. Wall Street, which was closed on Monday, also began the day in the red, with a decline of around 1%. The nervousness, already noticeable on Monday although the Ibex 35 ended the session limiting its losses, prevails because US President Donald Trump has made it clear that tariffs are one of the main instruments he intends to use to achieve his objectives. Aside from announcing additional tariffs for countries that send troops to Greenland, he warned that he would impose a 200% tariff on French wine and champagne if the country's president, Emmanuel Macron, refuses to join his "peace council" for Gaza. This opens up two simultaneous fronts affecting the markets: geopolitical tensions and a potential trade war. These variables increase uncertainty and complicate matters for investors. Given his capacity to surprise, everyone is waiting to see what Trump will say in his address at the World Economic Forum in Davos, Switzerland, where the global political and economic elite gathers. Also scheduled to speak are the president of the European Commission, Ursula von der Leyen; the Chinese vice premier, He Lifeng; and the president of France, Emmanuel Macron. In this context of uncertainty, the euro is trading at $1.17, with an upward trend, while currencies considered safe havens in uncertain situations, such as the Japanese yen and the Swiss franc, are gaining value. Experts see this movement as a massive withdrawal from risk linked to currencies more sensitive to the economic cycle and international trade, which could be affected in the event of a trade war. Currently, oil is rising moderately, with Brent crude, the European benchmark, at around $64 a barrel. Meanwhile, gold, continuing its role as a safe haven asset, is setting records at $4,719 an ounce, and silver is at $93.74, up more than 5%.