Ibex 35 started the week with a barely noticeable drift, slipping about 0.04 percent as traders watched the index hover near 8,269 points. Across the Atlantic, U.S. equities fell, with the Dow Jones Industrial Average retreating roughly 1.05 percent, the S&P 500 sliding about 1.45 percent, and the Nasdaq composite surrendering around 2.18 percent as of early morning trading, contributing to a chorus of losses across Wall Street. The softer tone in New York bled into European risk sentiment, nudging regional bourses into firmer or more cautious territory depending on sector exposure and domestic narratives.
That momentum left a noticeable imprint on the Madrid benchmark, which had already given back about 0.3 percent from its prior session and opened the day just shy of the psychological 8,300 mark. In Spain, the Instituto Nacional de Estadística (INE) issued a provisional reading showing third-quarter GDP growth at 0.1 percent, alongside a year-over-year expansion of about 4.4 percent. The data paints a mixed domestic picture where a modest growth track fights against stubborn inflation pressures, shaping the narrative for policymakers, investors, and business owners weighing the path ahead.
In the early price discovery, leadership within the session was led by higher prints from Acerinox, up 1.31 percent, followed by ArcelorMittal gaining 1.10 percent, Sabadell advancing 1.03 percent, and Grifols rising 1.21 percent. Conversely, the downside was broad-based in places, with Amadeus down 0.87 percent, Bankinter slipping 0.44 percent, Repsol easing 0.43 percent, and Acciona trading roughly 0.43 percent lower. Taken together, the opening moves revealed a market splitting along sector lines and stock-specific stories, including resilience in material stocks and some softness in travel and energy exposures.
The broader European landscape opened with a mixed tone. Frankfurt inched higher by around 0.2 percent, while Paris and London maintained a largely flat trajectory. The day suggested investors were proceeding with caution, weighing global growth signals and the potential implications of regional policy cues on earnings, capital flows, and funding conditions. Traders remained attentive to inflation trajectories, supply constraints, and geopolitical risk as key variables shaping risk appetite.
Commodity markets also shifted. Brent crude, a global benchmark for European energy markets, rose roughly 1.63 percent to hover near $82 per barrel, while West Texas Intermediate gained about 1 percent, trading close to $78. In currency markets, the euro hovered around $1.0620, reflecting a stable yet sensitive exchange rate amid shifting risk sentiment. Spain’s risk premium, a gauge of sovereign funding costs, sat near 107 basis points, and the yield on the ten-year Spanish government bond hovered around 3.44 percent, underscoring the ongoing balance between a favorable growth outlook and fiscal considerations in the debt market.
Market participants continued to parse the evolving inflation backdrop, central bank communications, and the trajectory of corporate earnings. Sentiment in Madrid was influenced by domestic data while being tethered to the global rhythm of risk-on and risk-off cycles. The day’s price action suggested investors were positioning for a transitional period where growth could be sustained by consumer demand and a measured approach to policy normalization, even as tighter financial conditions and price pressures linger. In this context, sector rotation appeared likely to persist, with traditional cyclicals potentially benefiting on signs of steadier external demand, while more rate-sensitive names could face continued volatility.
Looking ahead, traders will likely keep a close watch on macro releases, central bank commentary, and any shifts in geopolitical risk that may alter risk premia across Europe and North America. The intertwined nature of global markets means that movements in one region often echo through others, shaping the tone for the week ahead. Investors might balance the immediate reaction to data with the longer-term implications for growth, inflation, and policy paths as they build portfolios designed to weather a varied and evolving macro environment.