Ibex 35 drifts lower as energy costs surge and euro weakens ahead of Jackson Hole

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Ibex 35 retreats as European markets wobble amid rising energy costs

The Ibex 35 opened lower this Wednesday, retreating about 0.44 percent and slipping below the 8,200-point mark after a negative close on Wall Street yesterday. European markets face renewed recession fears while energy prices continue to press higher across the continent, setting a somber tone for the trading day.

In Madrid, the index began the session around 8,189 points, following yesterday’s finish at 8,226. The move reflects a cautious mood among investors as global macro data and inflation concerns keep the focus on central banks and policy signals.

Attention shifts to the Jackson Hole summit, set to begin tomorrow. Traders will be keenly watching developments in the euro as it remains soft against the dollar, alongside fresh macroeconomic indicators from the United States that could influence rate expectations and currency moves.

Across Western Europe, the major indices were in the red at the open. Frankfurt slipped about 0.5 percent, Paris fell roughly 0.3 percent, and London was down just over 0.2 percent, underscoring a broad risk-off sentiment as markets digest global growth data and energy price dynamics.

Within the Ibex 35, early trading showed gains for a handful of constituents. Merlin rose about 1 percent, Acciona gained roughly 0.58 percent, Iberdrola edged up 0.4 percent, and Solaria added around 0.3 percent. On the downside, PharmaMar led losses with a fall near 1.4 percent, followed by BBVA around 1 percent, Inditex down about 0.89 percent, Santander off 0.86 percent, and Meliá closing the list with a small decline of about 0.3 percent.

At the European market open, Brent crude hovered near $100.21 per barrel, a reference for the continent, while Texas Intermediate traded around $93.83 after a modest 0.1 percent uptick. Currency markets showed the euro trading below parity against the dollar, with the single currency fetching approximately 0.9946 dollars. In the debt market, the Spanish 10-year yield surpassed 2.55 percent, highlighting ongoing concerns about interest rates and borrowing costs for governments and corporations alike.

Analysts note that investors will be watching closely for any signals from central bankers that could shape near-term rate expectations, while energy prices and currency movements continue to drive volatility across equities and fixed income. Market participants in North America and Europe are braced for surprises as inflation trajectories and growth data evolve, potentially reshaping portfolios in the weeks ahead.

Source notes: Market observations reflect conditions reported by financial news services and index providers, with ongoing updates from major trading sessions and policy events. Data presented are indicative and subject to revision.

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