This Monday began with a move lower for the Ibex 35, dipping about 1.2 percent and pushing the index toward the 8,000-point threshold. European markets opened with a broad sense of caution as oil prices rose while the euro remained under pressure against the dollar. The Madrid market opened in a lower position after a Friday close around 8,064 points, the weakest level since late July, a consequence of remarks by Japan’s central bank and, more broadly, by statements from major global authorities.
Powell signaled that the Federal Reserve will keep policy tight until inflation moves decisively toward a 2 percent target. He warned that households and businesses should expect continued belt-tightening measures as the U.S. central bank uses rate adjustments to cool price growth. The central bank’s stance has fed expectations of additional rate increases, with a September move being discussed by traders and analysts. Markets reacted negatively to the tone, sending Wall Street into the red on Friday and leaving most Asian equities with declines on the day. (Reuters)
Across the Continent, the opening session did not escape the mood of caution. Frankfurt and Milan both fell about 1.1 percent, with Paris down roughly 1.2 percent. London was briefly closed for a holiday, contributing to a lighter regional trading day. Within the Ibex 35, only Siemens Gamesa showed a modest gain in the early hours, recording a fractional rise near 0.1 percent. The most pronounced declines came from Grifols, dipping more than 2 percent, followed by Amadeus and Santander, each sliding around 1 to 1.5 percent, with Sabadell notching a sub-1 percent drop. (Bloomberg)
As European markets moved lower, Brent crude traded near 99.63 dollars per barrel, a step higher on the session, while U.S. West Texas Intermediate (WTI) noted a price around 93.69 dollars after a similar morning uptick. The energy complex remained sensitive to global supply signals and domestic demand expectations, contributing to a choppy but generally firm tone in commodities. (Agency data)
In the currency arena, the euro traded just below parity with the dollar, hovering around 0.9933 USD per euro. The foreign exchange landscape reflected ongoing pressure on European currencies as investors weighed differing monetary trajectories and growth prospects. On the sovereign debt front, the yield on the Spanish 10-year bond edged up to about 2.67 percent, signaling continued demand for relatively higher-yielding euro-area debt alongside cautious risk sentiment. (Reuters)
Overall, the session painted a picture of cautious consolidation for European equities, with the U.S. and global macro narrative centered on inflation dynamics, central bank policy paths, and the resulting impact on currencies, energy prices, and risk assets. Investors assessed the likelihood of further rate actions in the near term while monitoring inflation data, growth indicators, and geopolitical developments that could influence the global trajectory of demand. Market observers noted that the current climate requires adaptability, as sectors with sensitive exposure to rates and energy costs faced the most pronounced moves. (MarketWatch)
The balance of risk and opportunity remained delicate as traders balanced expectations of tighter financial conditions against signs of resilience in consumer demand and corporate earnings. In this environment, the Ibex 35 reflected broader European market sentiment, with gains and losses spread unevenly across components, and with a focus on how major policymakers steer inflation toward stability. Analysts suggested that volatility could persist until fresh data clarifies the path for monetary policy and fiscal support, underscoring the ongoing re-pricing across equities, fixed income, and commodity markets. (Financial Times)
Overall, investors were urged to stay attentive to central bank communications, energy market signals, and currency movements, all of which continue to shape short-term trading ranges while longer-term strategies are recalibrated in response to evolving macroeconomic realities. ( CNBC)