Spain's IBEX 35 stock index on Tuesday lost the 11,100-point level on Friday, continuing the decline of the day before, in a climate of concern about the possibility of Donald Trump reaching the U.S. presidency again and what this means for Washington's relations with Beijing.

Financial markets view Trump's election victory later this year as more likely after surviving a Donald Trump assassination attempt this weekend, which has pushed bond yields higher -- on the prospect of rising U.S. debt -- and triggered fears of worsening tensions with the world's second-largest economic power.

These feelings were exacerbated by the nomination of J. D. Vance as Trump's running mate, as the potential vice president is seen as likely to increase protectionist measures against Beijing.

"(Today China's markets) suffer from the possibility of higher tariffs and following statements by Vance, Trump's pick as his number two, that China is the biggest threat to the U.S.," said brokerage Renta 4.

In any case, stock market declines were limited by the growing conviction that the Federal Reserve (Fed) will lower interest rates in September, following comments by its chairman, Jerome Powell, who said that the three US inflation data for the second quarter "somewhat reinforce confidence" that inflation is returning to the Fed's target in a sustainable manner.

"Added to that is the gradual cooling of the labor market, with the unemployment rate rising slightly to levels we haven't seen since 2021. (Powell's words) support our forecasts of 2 Fed rate cuts in 2024, even without ruling out 3, with the first of these at the September 18 meeting, to which the market already gives a probability of over 100% (-25 bps)," said Renta 4 analysts.

During the day, the focus will be on the ZEW survey in Germany (0900 GMT) - which will give clues about the evolution of the largest European economy in the run-up to Thursday's ECB meeting - as well as US retail sales and import prices (1200 GMT).

There will also be interest in U.S. corporate earnings, with figures from Bank of America, Bank First, Charles Schwab, State Street and Morgan Stanley.

At 0715 GMT on Tuesday, Spain's IBEX 35 was down 113.60 points, or 1.02%, to 11,029.40 points, while the FTSE Eurofirst 300 index of large European stocks was down 0.63%.

In the banking sector, Santander lost 0.89%, BBVA fell 1.45%, Caixabank gave up 0.92%, Sabadell fell 0.84%, Bankinter dropped 0.55% and Unicaja Banco lost 0.76%.

Among the large non-financial stocks, Telefónica fell 0.80%, Inditex dropped 1.83%, Iberdrola dropped 0.85%, Cellnex fell 0.61%, and the oil company Repsol lost 0.99%.

(Information by Tomás Cobos; edited by Benjamín Mejías Valencia)