The IBEX 35 kicked off Thursday with a modest drop, slipping around 0.61 percent as the index hovered near the 8,425 point mark. Early trade showed a broad move into negative territory for most components, reflecting cautious sentiment as traders digested overnight losses on Wall Street. The session started with prices unsettled and several stock ideas facing selling pressure, signaling a cautious mood as investors awaited further cues.
Across the Atlantic, major U.S. indices extended their declines. The Dow Jones Industrial Average fell sharply, recording a drop close to four percent, while the S&P 500 and the Nasdaq also finished notably lower, each down by a little over four percent. The broad downturn underscored concerns about macro data, interest rate expectations, and ongoing geopolitical risks that have investors revaluating risk assets.
In Madrid, pressuring the early declines, several high-profile Spanish names moved to the downside as trading commenced. IAG led losses among the blue chips, followed by a handful of large players including Cie Automotive and Inditex, with each registering a pullback. Amadeus also faced selling pressure, and Grifols, Indra, and Meliá Hotels International consolidated the downward trend. On the flip side, a few stocks managed to resist the selling wave, with Sabadell and Solaria showing the day’s only modest gains as investors rotated toward defensive names and selective growth bets.
Meanwhile, the rest of Europe opened lower against a backdrop of global risk-off sentiment. Frankfurt started the session down around one percent, Paris slipped by slightly more than one percent, and London’s market moved lower as traders reassessed sector dynamics and earnings signals across the continent. The directional weakness across major bourses highlighted the connected nature of regional markets amid jitters about inflation trajectories and central bank policy continuing to influence equity valuations.
In energy markets, Brent crude traded near a high for the week, with the European benchmark touching just over one hundred ten dollars a barrel as traders weighed geopolitical risks, supply discipline from producers, and demand outlook. U.S. West Texas Intermediate also rose, recording a price near one hundred eight dollars per barrel. The price action in oil reflected ongoing tensions and the role of energy prices in shaping inflation expectations and consumer spending power, especially in regions heavily dependent on energy imports.
Against the backdrop of currency movements, the euro held steady near the mid one point zero four six range against the U.S. dollar, underscoring a currency environment that tends to weigh on exporters and price competitiveness for European companies. Market participants continued to monitor the balance of risk assets, with traders seeking direction from upcoming statements by central banks, as well as any fresh updates on economic growth prospects. The day’s early activity painted a portrait of a risk-off environment where equities and energy prices interact with currency shifts to shape the near-term trading narrative.