The Ibex 35, the main gauge of Spain’s stock market, extended its positive run once again, marking a fourth straight week with gains and closing near the 8,400-point level. The index finished higher, up by 3.7 percent from the previous Friday, as it climbed to 8,400 points.
Among its components, the selective index advanced by 20.4 points, equivalent to 0.24 percent, stabilizing around the 8,400-point mark. Across Europe, stock markets finished in the green: Frankfurt rose 0.74 percent, Milan 0.49 percent, London 0.47 percent, and Paris 0.14 percent, signaling a broad risk-on mood in European equities as traders digested recent data and earnings expectations.
In the United States, benchmarks also posted gains as markets closed. The Nasdaq Composite rose 1.22 percent, the S&P 500 advanced 0.7 percent, and the Dow Jones Industrial Average gained 0.56 percent, reflecting a weekend drift higher after a series of mixed economic signals earlier in the week.
Looking at inflation this week, the latest data showed the United States with an 8.5 percent year-over-year rate in July, while Spain reported inflation at 10.8 percent. Investors have grown somewhat optimistic that inflation may have peaked, potentially allowing the Federal Reserve to adopt a softer stance on rate hikes. Yet analysts caution that inflation remains well above target levels. Joaquin Robles, an analyst at XTB, noted that inflation remains roughly four times the Fed’s target, and a continued move toward a 2 to 3 percent inflation band would require persistent declines supported by policy adjustments and ongoing price normalization.
With markets advancing, next week is expected to bring a flurry of macroeconomic data and central bank commentary. Investors will be watching closely for guidance on the trajectory of rate hikes and the tone from policymakers as they assess growth momentum and inflation dynamics in both the United States and Europe.
Key data points on the horizon include the ZEW survey of investor confidence in Germany, where a rebound from June’s trough is anticipated, along with updated inflation readings for the Eurozone. In the United States, market watchers will receive housing market indicators, including building permits and existing home sales, to gauge the health of real estate amid shifting mortgage rates and demand conditions. The broader message from these indicators will shape expectations for monetary policy and risk sentiment across the Atlantic region.
Within the Ibex 35, some of the strongest performers included a robust performance from 6.67 percent in Tubacex, followed by Amrest and Aedas Homes with gains of 5.69 percent and 5.28 percent respectively. On the downside, Newaysa moved lower by 4.76 percent. Other notable movers included Banco Sabadell and Meliá, which rose 1.56 percent and 1.34 percent, while Solaria declined 2.65 percent and ArcelorMittal slipped 1.51 percent, underscoring the mixed rotate within the benchmark as investors weighed domestic earnings and sector-specific dynamics.
In broader market highlights, several sectors and individual equities showed notable movement. The energy complex saw volatility amid shifting demand expectations, with price dynamics affecting commodity-linked stocks. In the industrials and construction spaces, the performance was more mixed, driven by company-specific results and broader macro signals. The market tone suggested cautious optimism, as traders sought confirmatory data on inflation trends and policy paths that could influence near-term allocations and risk appetite.
On the commodities front, Brent crude, often used as a benchmark for European energy markets, hovered around the mid to upper $90s per barrel as the close approached. Prices showed modest declines, reflecting ongoing supply considerations and demand expectations. The currency markets held a steady tone as well, with the euro trading near the upper 1.02 to 1.03 dollar range in late sessions, and bond markets in Spain showing a modest yield, indicating a structured risk environment for European fixed income investors.
Overall, the market atmosphere remained tethered to incoming data, central bank communications, and global growth signals. For investors in North America and Europe, the coming sessions will be closely watched for clarity on inflation persistence, inflation-fighting policies, and the potential impact on corporate earnings trajectories. The path ahead remains data-dependent, with a focus on balancing growth concerns against price stability as markets position for the next phase of the tightening cycle.
The general trend suggests a cautious but constructive sentiment across major indices, with continued attention to inflation dynamics and policy signals that will shape trading strategies in the weeks to come.