MADRID, Jan 20, 2026, 00:23 CET — The market has closed.
Banco Santander (SAN.MC) closed Monday at 10.49 euros, slipping 0.4% in Madrid on volume near 18.6 million shares. The stock has surged about 114% over the last year, making it vulnerable to shifts in risk appetite. 1
Sentiment took a hit after European shares saw their largest decline in two months, triggered by U.S. President Donald Trump’s threat to impose tariffs on eight European nations unless the U.S. gains access to purchase Greenland. Andrew Kenningham, chief Europe economist at Capital Economics, said, “We doubt that (the tariffs) will be implemented as advertised.” Kyle Rodda, senior financial market analyst at Capital.com, noted, “After a low-volatility start to the year, equities may experience some downside pressure,” adding that trading was light due to the Martin Luther King Jr. Day holiday in the U.S. 2
The shock hits just as Spain’s major banks gear up for earnings season, with expectations already high following a strong 2025. Bankinter kicks off the cycle on Jan. 22, then CaixaBank follows, and Santander, BBVA, and Sabadell report later, according to financial daily Cinco Días. Renta 4 analyst Nuria Álvarez expects “continuity… with an even stronger fourth quarter,” though RBC’s Pablo de la Torre cautions the market might “overreact” if targets fall short. Net interest margin is under the microscope, given the average three-month Euribor in Q4 2025 was 33 basis points, or 0.33 percentage points, above the prior year, the paper noted. 3
Monday morning saw sharper selling pressure. Santander dropped roughly 2.4% as the IBEX 35 slipped about 1%, with other banks feeling the heat as well. 4
By the end of the session, losses had narrowed, yet the market remained unsettled: Santander shares fluctuated between 10.266 and 10.518 euros, hovering close to their 52-week high of 10.628 euros, well above the low of 4.645 euros. 5
Banks frequently act as a stand-in for growth expectations, with tariff news quickly shifting sentiment. When investors anticipate slower activity, loan growth and fee income usually face tighter scrutiny.
The bigger risk for Santander in the coming days might boil down to expectations. If deposit costs climb quicker than loan yields or if the bank takes a more cautious tone in its guidance, the interest spread could tighten and hit investor sentiment hard.
Traders are watching closely for any reaction from European officials to the tariff threat and the possibility of retaliatory moves. In Spain, early earnings reports due later this week will offer an initial gauge of whether the sector’s recent rally has gone too far.
Santander’s FY2025 blackout window kicks in on Jan. 20, a time when management usually clamps down on market comments ahead of earnings. The bank plans to report its FY2025 results on Feb. 4, followed by an Investor Day on Feb. 25. 6
