Investors have sought refuge in safer assets such as Treasury bonds and gold, reflecting global uncertainty and political and economic tensions on various fronts. Market volatility continues to be a challenge. Despite an increase in unemployment, the Spanish Social Security registered 21.09 million contributors, while SEPE reported 2.59 million unemployed.
Regarding international reactions and geopolitical tensions, Asian markets closed with mixed results, and the Chinese economy remains a focal point due to the trade war with the United States. In the U.S., investors are nervously reacting to recent political and economic announcements. The markets have been affected by the protectionist measures imposed by the Trump administration, which has increased tariffs by 10% on all Chinese imports, intensifying the trade war.
In the corporate sector, markets are attentive to quarterly results from large companies. PepsiCo reported earnings per share (EPS) of $1.96, exceeding expectations, although its revenues were below forecast. Alphabet, Google's parent company, is about to publish its results after the market closes. Gold and safe assets will continue to be attractive refuges as economic and trade tensions persist.
China filed a formal complaint with the WTO, warning that "there are no winners in a trade war." In response, it imposed tariffs of up to 15% on U.S. imports of coal, liquefied natural gas, crude oil, and agricultural equipment. Global financial markets continue to show signs of volatility due to geopolitical and macroeconomic uncertainties.
In the financial sector, UBS exceeded market expectations with net income of $770 million, while BNP Paribas reported a net profit of €2.32 billion. In Spain, January unemployment data shows an increase of 38,725 people. Meanwhile, Iraq plans to resume the export of 300,000 barrels per day of oil through its pipeline with Turkey.
Politically, agreements have been reached to suspend tariffs between Canada, Mexico, and the U.S. Meanwhile, Trump has expressed his intention to impose a 10% tariff on European Union products, raising concerns within the community bloc. The U.S. Federal Reserve has confirmed the sale of arms to Israel for one billion dollars.
Amid increasing uncertainty, markets have experienced significant declines in major Wall Street indices, while gold has reached new historical highs with an 8% rise so far this year.
