Ibex 35 opened Thursday’s session with modest momentum, climbing 0.44% to hover around the 10,000 mark as it reached 10,033.2 points. The move comes after investors digested the Federal Reserve’s latest decision, which kept U.S. short-term borrowing costs in a 5.25% to 5.5% range—the highest level since January 2001. With the European markets still closed for the day, traders weighed how this stance might influence global liquidity conditions and European equities as the week progresses.
Powell signaled that the Fed intends to hold rates steady at the current corridor but acknowledged that the peak may be in place and could ease later in the year. The central bank’s commentary suggests a cautious outlook, balancing the need to curb inflation while monitoring signs of cooling activity across major economies. Investors are parsing the implications for financial conditions, borrowing costs, and corporate earnings across markets that remain sensitive to policy signals from the United States.
On the earnings front, Banco Sabadell informed the National Securities Market Commission (CNMV) that it posted a record net profit of 1.332 billion euros for 2023, up 55.1% year over year. The financial group also unveiled a 340 million euro share repurchase program and a supplementary dividend of 0.03 euros per share, signaling confidence in its profitability trajectory and capital returns for shareholders.
From a macro perspective, attention will focus on preliminary euro area inflation data for January, due later in the week. Market participants will also be watching remarks from European Central Bank President Christine Lagarde for hints on the pace of future policy adjustments and the ECB’s assessment of inflation risks in the euro bloc.
Domestically in Spain, the Public Treasury is set to launch February auctions, offering government bonds with an expected value ranging between 5.75 and 7.25 billion euros. This issuance comes amid a backdrop of the ECB’s recent decision to keep rates at 4.5% through its third consecutive policy meeting, reinforcing cautious but stable monetary conditions in the region.
In the early trading session, the top movers on Ibex 35 were Repsol up 0.44%, Banco Santander up 0.43%, Telefónica up 0.16%, Cellnex up 0.14%, and Amadeus up 0.14%, with Sabadell among the few laggards, down 5.47%. Other notable declines included Grifols at 3.18%, Acciona Energía at 2.49%, Unicaja Banco at 2.48%, and Colonial at 2.06%. The broader European market opened lower, with Paris down 0.97%, London 0.61% weaker, Frankfurt 0.45% softer, and Milan edging lower by 0.25%, reflecting cautious sentiment across the region.
Commodity and currency markets mirrored the risk-off mood, as Brent crude futures opened slightly lower and the U.S. benchmark for European markets eased by around 0.10% to approximately $80.47 per barrel. Texas light crude also dipped marginally, trading near $75.80 per barrel. In the foreign exchange space, the euro hovered around 1.0783 dollars, reflecting ongoing currency volatility as traders weigh monetary divergence and inflation trends. The Spanish 10-year government bond yielded about 3.12%, indicating a modest uptick in yields amid a global search for yield in a rate environment that remains broadly soft on growth concerns.
Overall, the day’s activity signals a market that is cautiously optimistic as investors recalibrate expectations in light of the Fed’s stance and upcoming euro area data. While equities show selective strength in large blue chips and energy companies, the risk-off tone persists in other sectors as traders await clearer signals on inflation and policy normalization in both Europe and North America. The balance between supportive financial conditions and the potential for rate relief later in the year remains a central theme for traders navigating the intertwined paths of these major markets. (Market summaries and official disclosures from the CNMV and ECB are cited for context.)