Lisbon Stock Market Experiencing a Downturn
8:45 AM in Lisbon, The Downturn
Strong coffee, no sunshine. That's Lisbon at 8:45 AM as the PSI plunged 5.94% to 6,241.55 points - a low not seen since April 17, 2024. The blast of icy air hit the stock market hard, with CTT shares mirroring the trend, dropping 7.01% to 13.40 euros.
Galp wasn't far behind, and neither were Ibersol, BCP, and Semapa. They tumbled more than 6%, with Ibersol at 6.98% to 8 euros, BCP at 6.51% to 0.46 euros, and Semapa at 6.26% to 14.04 euros.
EDP and EDP Renováveis followed, with a 5.99% and 5.97% slide to 2.97 euros and 6.93 euros, respectively. REN, Mota-Engil, and Corticeira Amorim weren't spared either, falling 5.85% to 2.65 euros, 5.69% to 2.95 euros, and 5.67% to 7.16 euros.
Jerónimo Martins, Altri, and NOS couldn't escape the cold either. They dropped 4.59% to 19.52 euros, 4.56% to 5.63 euros, and 4.30% to 4.11 euros. Sonae and Navigator weren't immune to the downturn, with 3.94% and 3.36% plummets to 1.0 euros and 3.10 euros, respectively.
European markets weren't looking too peachy either. The main European stock exchanges plummeted as if pushed off a cliff. The London, Paris, and Frankfurt stock exchanges dropped 4.58%, 5.78%, and 6.58%, respectively, while those in Madrid and Milan slid 5.51% and 6.90%. Even Frankfurt took a nose-dive, falling by more than 9%.
The Frankfurt stock exchange also saw a $62.77 fall in June Brent crude from $65.77 on Friday. The euro experienced a slight revival, rising to $1.1028 on the Frankfurt foreign exchange market, up from $1.0956 on Friday.
All of this can be traced back to one man: Donald Trump. His inflexibility regarding tariffs imposed on the United States' trading partners sent shockwaves across the globe, sparking a massive global sell-off that started in Japan's Nikkei, marking its largest decline in 40 years. The ensuing domino effect touched every corner of the world and was worsened by fears of a global recession and the sudden loss of cheap borrowing costs. Sectors heavily dependent on economic cycles and borrowing costs, such as travel and leisure, took the brunt of the hit. While oil and gas shares saw slightly positive movements due to escalating geopolitical tensions, the vast majority saw drops. The pan-European Stoxx 600 index plummeted, reflecting ongoing market unease.
- The news of Portugal's stock market downturn, with indices like PSI falling to lows not seen since April 2024, is causing concern in the business and investing industry.
- Notable Portuguese companies, such as Galp, Ibersol, BCP, Semapa, EDP, Renewables, REN, Mota-Engil, Corticeira Amorim, Jerónimo Martins, Altri, NOS, Sonae, and Navigator, have experienced significant drops in their shares.
- This global sell-off can be attributed to the imposition of tariffs by Donald Trump, leading to a cascade of events that started in Japan's Nikkei market and affected European markets, causing steep declines in London, Paris, Frankfurt, Madrid, and Milan.
- The finance sector is closely monitoring the situation, with oil and gas shares showing slight positive movements due to escalating geopolitical tensions, while numerous other sectors are experiencing substantial drops, including the travel and leisure industry.
