The Ibex 35 began the trading day higher, adding 0.64 percent as investors weighed the latest market signals and awaited the Federal Reserve’s upcoming policy meeting. Early gains positioned the index near the 8,200 level, a psychological threshold that had previously acted as a focal point for traders. Currency moves and inflation news continued to shape investor sentiment as May inflation figures arrived, showing a renewed 8.6 percent rise in the United States and reinforcing concerns that inflation remains a stubborn headwind. These dynamics set the tone for a session characterized by cautious optimism rather than outright exuberance.
Markets entered the week with a mix of confidence and uncertainty, as traders anticipated clarity from U.S. monetary policy and the potential implications for global liquidity. The meeting of the central bank was seen as pivotal for guiding expectations on interest rates and future stimulus measures, with participants watching for any signals about slowing growth or cooling inflation that could influence asset valuations across regions. The broader macro backdrop included ongoing uncertainty around price pressures that have persisted into the spring months, underscoring the sensitivity of equities to monetary policy communication.
Investors also turned their attention to macroeconomic indicators from Europe. The ZEW index, which gauges investor confidence in Germany, drew attention as a potential barometer of continental sentiment. Meanwhile, the Madrid stock market experienced a cautious morning following a prior day of declines, yet several components showed resilience with notable intraday gains that helped lift the overall index above the 8,200 point mark. The day in Spain contrasted with the relative strength seen on Wall Street, where some indices remained under pressure from overnight losses and shifting risk appetite.
Among larger contributors to early gains were several bank and industrial names. ArcelorMittal led with a solid advance while financials such as BBVA, Santander, and Caixabank joined the parade of green across the board. Industrial and travel-related equities like Amadeus and Meliá Hotels also posted meaningful gains, reflecting ongoing rotation within sectors as investors reassessed growth prospects amid inflation and policy risk. On the downside, a few laggards appeared, including some industrial names that faced modest pullbacks as the session wore on, reminding traders that breadth remains a critical factor in sustaining rallies.
Across the rest of Europe, major markets opened with modest strength, underscoring a shared sense of cautiousness as traders awaited directional cues from policy debates and data releases. The energy complex remained a key driver of dispersion, with Brent crude trading near recent highs and WTI testing levels that underscored the tension between global demand stability and supply constraints. The movement in oil prices, while supportive of energy equities, also fed into inflation expectations and broader market volatility as participants weighed inflation resilience against growth prospects.
From a currency perspective, the euro continued to trade near pivotal levels against the U.S. dollar as markets navigated the evolving outlook for European growth and monetary normalization. The Spanish risk premium and sovereign yields moved in response to shifting risk appetite and expectations for central bank policy adjustments over the coming months. Taken together, these factors painted a picture of a market environment that favors selective exposure and disciplined risk management as investors position for potential shifts in monetary stance and the trajectory of inflation globally.