Spanish stocks, bonds dented by Trump trade embargo threat
LONDON, March 4 (Reuters) - Spanish stocks and bonds came under pressure on Wednesday, after President Donald Trump threatened to impose a full trade embargo on the country after Madrid's refusal to allow the U.S. military use its bases for missions linked to strikes on Iran.
Futures on Madrid's blue-chip IBEX .IBEX slid over 1%, compared with a fairly steady performance in Euro Stoxx 50 futures STXEc1, while Spanish government borrowing costs edged up. That pushed the premium investors want to hold Spanish debt rather than benchmark German bonds to its highest since December, at nearly 47%.
Spanish 10-year bond yields ES10YT=RR rise for a third day, up another 2 basis points at 3.24%. Benchmark German yields are down one basis point.
Shares in Banco Santander SAN.MC fall 0.3% on the Tradegate retail platform while those in Bankinter BKT.MC fall 1.4%.
"Spain has been terrible," Trump told reporters during a meeting with German Chancellor Friedrich Merz, adding that he had told Treasury Secretary Scott Bessent to "cut off all dealings" with Spain.
